Good Morning.

 

 

I am very pleased to join you here today, as we mark yet another milestone in the    partnership between ExxonMobil and Singapore.  Earlier this year, we witnessed the opening of ExxonMobil’s Singapore Chemical Plant Expansion by Prime Minister Lee Hsien Loong.  Today, we celebrate the groundbreaking of ExxonMobil’s latest investment – the Singapore Butyl & Adhesion (SBA) project.

 

 

This investment is further affirmation of ExxonMobil’s deep commitment to Singapore.  It is a commitment shared by the broader Energy and Chemicals industry as evident in the speed and scale of Jurong Island’s transformation.  Over the past 2 years alone, the industry has attracted more than S$10 billion of investment, bringing the cumulative investments in Jurong Island to more than $43 billion.  Over the same period, we have seen 13 plants commence operations on Jurong Island, with combined investments of more than $13 billion.  I was particularly pleased to note that this large volume of investments have been marked by quality and safety.  For instance, the expanded ExxonMobil Singapore Chemical Plant holds the industry-wide record for construction safety .  I am confident that your high standards of safety, operational integrity and discipline will ensure that this new project too will be a source of pride for both ExxonMobil and Singapore.

 

 

Globally, the Energy & Chemicals sector is witnessing profound changes.  The shale gas revolution in the United States has provided the country with cheap energy and feedstock options.  We have seen up to 10 gas cracker projects announced for the US to tap on this shale gas boom.   Some wonder how Singapore will continue to compete in this changing Energy & Chemicals landscape, and whether our strategy of integration will remain relevant.

 

The simple fact is that Singapore has competed on the basis of integration and innovation since the birth of our Energy & Chemicals sector, and will continue to do so.  The high value-added, specialty SBA project is a clear demonstration of the effectiveness of this strategy.  The availability of a critical mass of higher olefin feedstock here was an important factor influencing the decision to site this project in Singapore.

 

Innovation has also been key to the development of the Energy & Chemicals sector in Singapore.  For example, Jurong Island was created when seven islands were reclaimed to overcome space limitations, forming the heart of our Energy & Chemicals sector.  This enabled companies to pursue synergies with each other through closer integration.  Going underground with the Jurong Rock Caverns is yet another example of how we continue to innovate to overcome our physical space constraints.

 

ExxonMobil has also been an important leader in innovation and technology in Singapore, with the world’s first cracker that is able to crack crude oil directly.  In this new project, ExxonMobil is manufacturing advanced and environmentally sustainable products using proprietary technologies.  This emphasis on adopting leading-edge technologies and encouraging innovation allows Singapore to maintain its competitiveness in this industry on the basis of high-tech and high value-added projects, rather than feedstock prices per se.

 

 

Nonetheless, containing costs is always a priority for companies and we are working to address feedback pertaining to energy costs.  The Government aims to enhance the long term competitiveness of our energy sector through several policy initiatives.

 

First, on the supply side, we are further diversifying our sources.  The Energy Market Authority (EMA) has launched a Request-for-Proposal (RFP) earlier this year to appoint up to two more LNG importers, to supply the domestic market.  With multiple sources of piped and liquefied natural gas, there will be more competition and consumers will have more choice. 

The Government is also investing in energy infrastructure ahead of demand.  Our LNG Terminal will have a capacity of around 11 million tonnes per year by 2017 when the fourth tank is built.  It has a potential capacity of 15 million tonnes per year.  We have also announced plans to build a second LNG terminal in the east to support new industrial sites and power plants.  With greater capacity, the terminals will ensure that Singapore has even more options to source for competitive LNG globally in the long run.

 

Second, on the demand side, the Government will continue to work closely with companies to improve energy efficiency.  This is in the companies’ own interests, especially where energy costs constitute a significant component of total operating costs in the industry.  The Government will also support industry’s efforts to improve energy efficiency through initiatives such as the Energy Efficiency Improvement Assistance Scheme and Grant for Energy Efficient Technologies.

 

These measures may take some time to achieve full effect, but they underscore the Government’s commitment to ensuring that our manufacturing, which makes up about one-fifth of Singapore’s GDP, remains competitive by addressing one of its key input factors - energy.

 

 

The success of the energy & chemicals industry has also resulted in good job opportunities that meet the aspirations of Singaporeans.  Today, we have many Singaporeans who have built strong careers within companies in the industry.

 

One such Singaporean who is building his career is Mr Muhammad Erwin.  After his ‘O’ levels, he joined ExxonMobil without any background in chemical engineering.  On-the-job training and operational experience have provided him with opportunities to grow his career and develop capabilities crucial for the industry.  After six years of work experience and training with ExxonMobil, his perseverance has been recognised and he is now a Senior Process Technician at the SBA project.  ExxonMobil has also given him the opportunity to work with experienced professionals from around the world.  In his new role, he is learning from senior planners to formulate a comprehensive plan for the implementation of this project, as part of the technical training and mentorship provided to develop his career.  He is able to learn from the best, and we expect him to join their ranks.    

 

I am also glad that Mr Gan Seow Kee, a Singaporean, has recently been appointed the Chairman and Managing Director of ExxonMobil Asia Pacific Pte Ltd.  A graduate from the National University of Singapore, Mr Gan has a proven and diverse track record in treasury, sales, manufacturing, logistics and trading in his 35-year career with ExxonMobil.  I congratulate him on his new appointment and wish him every success.  Welcome home!

 

 

Let me conclude by, once again, thanking ExxonMobil for your continued trust and commitment to Singapore and Singaporeans.  We look forward to working closely with you in the coming years to further develop Jurong Island, upgrade ExxonMobil’s assets, and introduce new technologies.  Congratulations to ExxonMobil, and especially the project team, on achieving this milestone.  I wish you speedy and safe completion of the SBA project and look forward to its opening soon.