Singapore wants to maintain its status as major oil hub

Singapore will press ahead with innovative ways to maintain its status as one of the world's major oil hubs. That could include building underground rock caverns on Jurong Island, or exploring alternative energy sources, such as solar power and hydrogen fuel cells, said Senior Minister of State for Trade and Industry, Dr Vivian Balakrishnan.
Speaking at the 20th Asia Pacific Petroleum Conference, Dr Balakrishnan spelt out the steps Singapore could take to stay on top of the energy trade. Already one of the world's major oil hubs, the island is positioning itself to become a gas hub as well.

With more than 70 companies, Singapore's Jurong Island is now recognised as one of the world's major oil and chemical hubs. The island is host to one of the world's top three refining centres, alongside Rotterdam and Houston. And in terms of the oil trade, Singapore is the world's third largest oil trading centre, after New York and London. But the city-state is not about to rest on its laurels.
"We are now seriously studying the possibility of building new underground rock caverns on Jurong Island. This will help us to overcome Singapore's space constraints and yet address the industry's requirement for competitive storage," said Dr Balakrishnan.

Current high oil prices have underscored the importance of diversifying energy sources. Already, about 60 % of Singapore's total power is supplied by gas. Looking ahead, Singapore wants to become a hub for gas, as well as for oil.
"We are also studying the possibility of constructing an LNG terminal and developing a market for gas trading. Over time, we believe that like oil, gas will develop into a more widely traded commodity that will play a pivotal role in the energy market," Dr Balakrishnan said.

He says oil is expected to remain the primary source of energy for at least the next 20 to 30 years.
Asia will be the region most hungry for oil, with demand from China and India expected to grow between 2.5 and 3 % a year, nearly double the world's average.