[SINGAPORE] As the global energy sector faces both trading uncertainty amid geopolitical tensions and transformation in a low-carbon future, Singapore remains committed to supporting firms navigating the turbulent landscape, said Low Yen Ling, senior minister of state, Ministry of Trade and Industry, at the Asia Pacific Petroleum Week 2025 (Appec 2025) on Monday (Sep 8).
The 41th edition of Asia’s largest annual gathering of energy executives, with over 1,200 delegates from 46 countries this year, kicks off in Singapore this week amid heightened market anxiety over a growing supply glut, following the move by the Organization of the Petroleum Exporting Countries and its allies (Opec+) on Sunday to raise production again.
The Opec+ decision to prioritise regaining market share adds to mounting concerns that global oil markets could tip into surplus well into 2026, especially as demand growth cools in major economies such as China.
Such changing supply dynamics with Opec+ unwinding production cuts, on top of increasing output by non-Opec+ countries such as the US and Brazil, add complexity to the increasingly challenging trading environment, noted Low in her speech.
“Additionally, oversupply from China is weighing on margins. Combined with softer demand from tariff-induced economic uncertainty and structural changes in key markets like China, Brent crude recently hit a four-year low in May 2025 at US$60 per barrel,” she said.
She added that a structural overcapacity in refining and petrochemicals, especially in East Asia, also placed downward pressure on margins.
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In such an uncertain environment, Singapore remains a global energy trading hub of choice for companies, with energy trade conducted through the Republic at US$1.67 trillion in 2024, up from US$1.44 trillion in 2023, she noted.
Six new firms from the energy and chemicals sector came on board Enterprise Singapore’s Global Traders Programmes in 2024, including Yulong Petrochemical which operates a 400,000 barrels-per-day refinery in Shandong, China.
“We continue to build on our key strengths as a trusted, stable and connected hub to anchor trading activities in Singapore,” Low reaffirmed.
The Republic is also supporting firms incorporating artificial intelligence (AI) into forecasting and risk management via government programmes.
She highlighted that national programme AI Singapore provides co-funding of up to S$180,000 per project, and access to manpower and AI experts.
On energy transition, she noted that Singapore is well-positioned to play a significant role in the four key growth areas of sustainable products, biofuels, alternative maritime fuels and carbon trading.
“We want to be clear – we will continue to grow the base in Jurong Island,” she highlighted.
In July, special chemical company Arkema opened the world’s largest integrated factory dedicated to biocircular materials on Jurong Island. The firm manufactures polyamide-11, a high performance polymer derived from renewable castor oil, leaving a lower carbon footprint than fossil-based polymers.
Low added that Singapore is also actively growing the biofuels production and trading ecosystem, on top of providing more support for alternative maritime fuels such as ammonia.
It is the home of the world’s largest sustainable aviation fuel production facility operated by Neste, as well as the base of over 250 traders in energy and agri-commodities, including major trading companies such as Wilmar and Olam, which control biofuel feedstocks.
“Singapore’s position as the world’s largest bunkering hub is a unique advantage as we prepare for a multi-fuel future,” said Low, adding that ammonia is expected to account for a substantial share of bunker fuels by 2050.
She highlighted a strong industry response of 26 bids for Energy Market Authority and Maritime Port Authority’s ammonia bunkering request for proposal.
Another critical aspect of energy transition is carbon trading. Singapore is now home to more than 150 firms across the carbon services and trading value chain – double the number from 2021.
“We remain committed to supporting global trading firms and energy players in setting up new carbon credit trading functions,” noted Low.
Appec is hosted annually in Singapore by S&P Global Commodity Insights and supported by Enterprise Singapore. Appec 2025 is taking place from Monday to Wednesday with the theme Asia’s Energy Nexus – navigating trade, technology and transition.
