Singapore may have to drop off its oil hub status in its pursuit of a greener future. Earlier this year, the government announced the Singapore Green Plan 2030, aiming to become the region’s leading hub of green finance, carbon trading, consulting, and other services. This marks a turning point in Singapore’s bet on fossil fuels.
Fossil fuels, along with its strategic location, has propelled Singapore’s growth for six decades. Data from the World Bank showed that chemicals and oil products contributed to about 23% of Singapore’s overall merchandise trade. As of 2019, the tiny city-state was the world’s fourth-biggest refined petroleum exporter.
Singapore’s oil journey began when Shell established its first refinery in Bukom Island prior to the country’s independence in 1961. Exxon followed suit by building a refining facility on the nearby Ayer Chawan Island, which is now part of the Jurong Island refining complex. However, Shell has announced it would slash operations in Bukom Island by half. Meanwhile, the Jurong Island complex is now part of the government’s transformation programme toward sustainable chemicals and energy.
Singapore is now aiming to become the regional hub for hydrogen. The government has deals with Chile and Australia for potential collaborations on hydrogen technology. It has also agreed with Japanese firms to explore ways to transport hydrogen. Hydrogen and LNG also allow Singapore to repurpose some existing oil and petrochemical infrastructure.
