Overview

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 (FPSO) vessel conversions and offshore jack-up rigs. A liquified natural gas (LNG) import terminal is already in operation to enhance Singapore’s position as the premier regional center for the oil and gas industry. 
 
Natural gas accounts for more than 93% of Singapore’s electricity generation. Natural gas is currently piped in from neighboring countries and LNG is shipped here from further afield. Singapore has a vision to be an LNG bunkering hub. As such, planning for a second LNG import terminal is underway. The new terminal will be a Floating Regasification and Storage Unit (FSRU) to complement the first import terminal that has been in operation for more than a decade. 

Other sub-sectors contributing to the overall energy sector in Singapore include petrochemicals, electricity infrastructure (including smart grids), renewable energy (such as solar energy on rooftops and reservoirs), and clean energy (such as fuel cells and the use of hydrogen/ammonia which is likely to replace natural gas from 2030 onwards). Additionally, Singapore is looking to import electricity from other countries and is considering the use of nuclear energy from 2040 onwards, which will also contribute towards energy security, sustainability, and resilience. Singapore has more than US$7 billion unallocated funds in their Future Energy Fund devoted to nuclear, electricity import, or hydrogen infrastructure.

In July 2024, Singapore and the United States signed the 123 Agreement to further collaboration on nuclear energy issues, including evaluating the feasibility of Small Modular Reactors (SMRs) for Singapore. Singapore officials have publicly highlighted their interest in SMRs, noting that they expect them to be operational globally by the end of the decade.  While officials have not stated when Singapore will decide on whether to deploy nuclear energy in Singapore, they are taking steps to develop capabilities in this sector.
 

Table: Energy Market Size, million USD

Units: $ millions
Source: IHS Markit

Singapore serves as the regional hub for Southeast Asia and there will continue to be strong opportunities for U.S. exporters in Singapore, especially if there is an uptick in subsea exploration and refinery activities as well as the wider adoption of more renewable/clean energy sources. This is in line with Singapore’s 2050 net zero emissions, use of low-carbon energy streams and decarbonization objectives.

Leading Sub-Sectors

• Supply of equipment such as boring or sinking machinery for upstream and downstream oil and gas, shipbuilding, marine, mechanical/electrical construction, oxidation additives, and various control systems.
   
• Renewable energy equipment such as performance monitoring/tracking systems, power optimizers, inverters, grid connectors, waterproof cables for floating solar panels.
   
• Electrolyzes, electrodes, hydrides, gas generators, purifiers and safety sensors which are used for hydrogen energy and fuel cells.
   

Opportunities

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 is also a world leader in the construction of exploration and production platforms and FPSO conversions.  

Clean and sustainable energy will be important to meet Singapore’s goal of achieving at least 2GW of additional peak power capacity in 10 years’ time. Peaking power plants represent only 1% of total electricity demand currently, but Singapore’s planned expansion would quadruple the amount of peaking capacity and allow for greater use of intermittent renewable energy sources.
  
According to press reports, Singapore also plans to deploy 200MW of energy storage capacity over the next decade to balance demand fluctuation to ensure system reliability. Singapore is adding floating solar power panels into its energy mix.  It is also expected to use increased amounts of clean hydrogen as an energy carrier, which is in line with global objectives to shift towards a low-carbon world.  

In land-scarce Singapore, even reservoirs are being used to generate electricity.  The Public Utilities Board is currently installing more solar panels on reservoirs and rooftops to generate renewable electricity and reduce carbon emissions. Singapore’s first large-scale floating solar photovoltaic (PV) system is now operational at Tengah Reservoir. Discussions are underway to also develop a floating solar farm in neighboring Indonesia, especially since the cost of solar energy has dropped from 40 US cents per KWh to 10 US cents per KWh over the past 10 years.

In addition, Singapore is looking to import electricity from clean energy sources from countries in the region. A demonstration project to import clean hydroelectricity from Lao PDR via a 2,000km transmission corridor across Thailand and Malaysia is underway. A feasibility study project is also in progress to import electricity from offshore wind in Vietnam via subsea cables.
 

Resources

Trade Shows  

OSEA 2026
November 24-26, 2026

Singapore Government Offices 

Enterprise Singapore (EnterpriseSG)
Energy Market Authority
Public Utilities Board
Singapore Power

U.S. Commercial Service, Singapore Contact

Mr. Chan Y K, Commercial Specialist  
Email: Yiukei.Chan@trade.gov