Distinguished Guests,

Ladies and Gentlemen,

1. Good morning. It is my pleasure to join you here at the second edition of the IE Singapore Gas Forum. This event is an important platform for companies from Singapore and abroad to gain insights into current market trends in the gas sector, and build mindshare among the industry leaders.

2. As the cleanest of all fossil fuels, natural gas plays a crucial role in Singapore’s path towards a clean energy future. According to the International Energy Agency (IEA), annual global gas demand will increase by 1.6% over the next five years, outpacing the annual growth rates of oil and coal by more than twice.¹ In particular, the rise in natural gas demand will be fastest for liquefied natural gas (LNG), and this is expected to be seven times more than pipeline gas.  

3. We see an increasing demand for natural gas being used for small-scale LNG solutions. It is gaining traction as a cost-effective method to bring natural gas to locations where pipeline construction is difficult or uneconomical. Demand for natural gas as a marine fuel is also increasing, especially with the International Maritime Organisation’s (IMO) decision to implement a 0.5% global sulphur cap for maritime fuel by 2020.

4. These trends in the natural gas industry present opportunities for many. Given our location here in the Asia Pacific and our infrastructure, Singapore is well-positioned to help companies based here capture and seize these possibilities.
   
   
   SSLNG and LNG as marine fuel as key drivers of LNG demand growth
   

5. The Government is working closely with industry players to make Singapore a gas hub. As many of you are aware, we already have a strong LNG trading and pricing presence with more than 45 trading desks here. Singapore also offers a vibrant support ecosystem in areas such as financing and legal services.

6. In addition, we are expanding our infrastructure for small-scale LNG solutions and LNG bunkering. The Singapore LNG (SLNG) terminal will have a throughput capacity of 11 million tonnes per annum by the end of this year, and a fourth storage tank will be completed by the first quarter of 2018. This additional storage capacity will not only cater to our domestic needs but also increase the scope for more LNG physical trading activities.

7. The SLNG terminal’s ability to reload LNG allows it to provide small scale LNG solutions to the region. Pavilion Gas has capitalised on these capabilities and successfully performed the first small scale reload earlier this year. Keppel Offshore and Marine, and Pavilion Gas are also exploring with Indonesia’s state-owned electricity provider PLN² to distribute LNG from Indonesia via a gas swap to locations in West Indonesia through small scale LNG carriers. These small scale LNG solutions help to bring gas to many households. Take Indonesia as an example, with its many islands – it presents tremendous opportunities and possibilities for our companies based here.

8. We have also taken a number of important steps to develop LNG bunkering here. The Maritime Port Authority issued two LNG bunkering licenses in 2016. In May this year, Pavilion Gas carried out South East Asia’s first truck-to-ship LNG bunkering demonstration at Jurong Port. As the industry adjusts to the IMO’s new mandate on sulphur content, we expect more ship-owners to consider LNG as a viable alternative maritime fuel. Companies should continue to build on this to proactively explore opportunities in areas such as LNG bunkering, as well as retrofitting or constructing new LNG-fuelled ships.
   
   
   Conclusion
   

9. In conclusion, the time is ripe for companies in the gas industry to build up capabilities and form partnerships so that we can maximise synergy. We can, through sharing of best practices, emerging trends and solutions, work together such that the whole is more than the sum of its parts. I think that is the beauty of an ecosystem based in Singapore. MTI and IE Singapore will continue to work closely with companies to help them capture emerging trends in the gas industry and seize overseas market opportunities.

10. I wish everyone a fruitful and productive session ahead. Thank you.