Distinguished Guests,
Ladies and Gentlemen,

Introduction

1. Good morning, very happy to see many of you again. Yesterday, we spent the whole day together, from the SIEW conference where our Deputy Prime Minister Gan Kim Yong shared about our 3Rs – Resilience, Reliability and Responsiveness – and then we had many different sessions before rounding off the day at the beautiful Clifford Pier with all of our good friends, connecting, exchanging ideas and inking deals. Welcome to the 2024 Asia Gas Markets Conference. This is my fourth year attending the conference. We discuss new trends each year and gain fresh insights into the evolving natural gas market.

Bridging Energy Needs in a Changing World

2. Natural gas has emerged as the bridge between our current energy mix and renewable energy future as the world fights climate change. It is a reliable and responsive source of energy supply supported by well-developed global supply chains. Natural gas is the cleanest fossil fuel and remains more affordable than many alternative energy sources. It also complements renewable energy sources by mitigating the intermittency of solar and wind generation. These factors make natural gas vital to many countries’ energy portfolios. It is about diversification, it is about energy security, it is also about energy affordability.

3. It is no wonder that global gas demand is forecast to reach an all-time high of 4,200 billion cubic meters this year. Growth is projected to continue in 2025, with Asia accounting for half of global demand growth, as countries in this region reduce their reliance on coal and pivot to gas.

4. This trend is especially pronounced in major economies like China and India. Indonesia and Malaysia, historically net natural gas exporters, are now importing more LNG in our region. The International Energy Agency predicts Southeast Asia will become a net gas importer by 2025.

5. Hence, we should expect gas trading volumes to increase. Traders and importers will likely stay busy for several years as cost-competitive and reliable energy is needed even as countries seek a net-zero energy mix.

Impact of Geopolitical Shifts on Global Gas Markets

6. However, the road ahead for LNG has its challenges. Geopolitical developments will continue to shape the global gas trade. In 2022, the world grappled with a severe energy crisis brought on by under-investments in energy and the Russia–Ukraine conflict. More recently, ongoing tensions in the Middle East have also raised new concerns about energy security. These geopolitical pressures have injected significant price uncertainty into the market. LNG markets are also expected to remain tight towards the end of 2024 due to forecasts of a colder winter. Lastly, delays in new liquefaction projects mean that the global LNG markets could come under strain if demand rises faster than supply growth.

7. Asia will be acutely affected by such volatility. Since the energy crisis, many countries have reevaluated their energy strategies to prepare for the unexpected. Some are turning to more long-term contracts to underpin their electricity demand, while others are increasing the size of their emergency stockpiles.

8. Even as we speed up the deployment of other low-carbon energy sources, we expect natural gas to remain a significant part of our energy mix. It is, therefore, critical that we strengthen the security of our gas supplies. Deputy Prime Minister Gan Kim Yong shared Singapore’s plans to centrally procure and supply gas for the power sector through a central gas entity, or a Gasco. This will bring about greater diversification of supply and economies of scale.  Gasco will be set up as a fully Government-owned company by the end of this financial year. We have started hiring staff. Gasco will start procuring gas from 2026.

9. We are also developing a second LNG terminal to increase Singapore’s regasification capacity by 5 million tonnes per annum, or about 50% of the existing capacity, to meet our power generation needs.

Synergies in the Energy Transition

10. Even as we expand our natural gas infrastructure, we recognise that natural gas is still a transition fuel. There must be a future without natural gas as we use it today. Emerging low-carbon fuels like hydrogen and ammonia could be increasingly important in our decarbonisation journey. This is why EMA requires new combined cycle gas generation plants to be hydrogen-ready. Carbon Capture, and Storage (CCS) is another potential pathway for mitigating emissions from our natural gas CCGTs. EMA is holding a Grant Call for CCS feasibility studies for the power sector to better understand the cost and infrastructure requirements. Our success will depend on our creativity, collaboration, and commitment to forge new pathways towards decarbonisation.

Conclusion

11. Natural gas will remain vital to countries' energy portfolios until we find an alternative low-carbon and cost-competitive energy source with an equally robust global supply chain. Let us continue to develop strong foundations to underpin our energy security today, even as we advance plans to decarbonise for tomorrow. Natural gas has a part to play in both parts of this journey. Together, let’s build a net-zero energy future that’s both secure and affordable. I wish all of you a productive and insightful conference. Thank you.