Singapore is
often listed as the leading oil trading hub in Asia (third largest in the world
after New York and London), and among the world’s top five oil refining
centers. It has a refining capacity of nearly double its rate of petroleum
products consumption. It is also a world leader in the construction of
exploration and production platforms and FPSOs conversions as well as for
jack-up rigs. However, with the industry downturn over the past 2-3 years,
there were less projects undertaken but the industry outlook is improving and
it is expected there will be new projects over the next 1-2 years.
According to industry sources and feedback from Singapore companies, the
stability and economics of oil prices are very important. In addition, cash
flow has an impact on new projects such as construction of new rigs so many
companies are consolidating, restructuring or adopting new innovative
technologies to be more efficient. An example of a new project that is proceeding
is the US$200 million semisubmersible floating production topside, which Shell
USA is building in Singapore and will eventually be located 150 miles southeast
of New Orleans in 4000ft depth of water in the Gulf of Mexico.
Engineering, procurement, and construction of the US$700 million LNG terminal
was awarded in late 2009 to a Korean consortium led by Samsung. The first phase
was completed in 2013 with the arrival of the first shipment of LNG from Qatar.
Future expansion work (including a second LNG terminal which has been
proposed), costing more than US$500 million, is already being planned as
Singapore aims to be a future hub for natural gas trading and transshipment in
Asia. Once all phases are completed by 2020, the first terminal will be able to
handle nine million metric tons per year.
Singapore
offers many opportunities for American companies including:
Supply of
equipment such as boring or sinking machinery for upstream and downstream oil
and gas, shipbuilding, marine, mechanical and electrical construction,
oxidation additives, and various control systems;
Oilfield
equipment including instrumentation such as drilling information systems,
drilling monitors, mud logging units, mud monitoring systems, torque gauges,
pressure gauges, weight indicators, deadline anchors, valves/actuators,
performance testing, and design control systems; and
Supply of
tubular products such as casings, tubing, carbon steel line pipes, drill pipes,
heavy wall pipes, drill collars, drill stem accessories, and mechanical alloy steel
tubes used on derricks.
Singapore
has become one of the most important shipping centers in Asia and is one of the
world’s top five oil trading and refining hubs. In addition, Singapore is one
of the market leaders for floating production, storage and offloading (FPSOs)
conversions and offshore jack-up rigs. A liquid natural gas (LNG) terminal is
being expanded in phases to enhance Singapore’s position as the premier
regional center for the oil and gas industry. In view of rising oil
prices, the industry is expected to be more promising over the next 1-2 years
than over the past 2-3 years. However, uncertainties in the global economy due
to politics and trade wars are affecting new projects coming onstream. As
the regional hub for Southeast Asia and its friendly business environment,
there will be opportunities for U.S. exporters in Singapore, especially if
there is an uptick in oil and gas prices and subsea exploration activities.