Shift towards sustainability may reshape one of the nation’s key industries
Singapore’s position as a global hub for the energy and chemicals (E&C) sector faces potential disruption as multinational corporations pivot towards cleaner energy sources. The transition away from traditional fuels is expected to take decades, but experts say oil and gas will remain critical to the global energy mix until at least 2050.
Jurong Island, the heart of Singapore’s E&C sector, is undergoing a transformation to align with sustainability goals. Plans are in place to make the island a hub for sustainable production and exports, reinforcing Singapore’s commitment to reducing its carbon footprint while maintaining its competitive edge.
Despite the shift, traditional energy sources such as oil and gas will not disappear in the near future. “The traditional energy sources – such as oil and gas or hydrocarbons – are not going away any time soon,” said Sanjeev Gupta, EY’s Asia-Pacific oil & gas leader.
As global corporations recalibrate their energy strategies, Singapore must balance its role in the current energy market with its ambitions for sustainability. The transition presents both challenges and opportunities for the industry, with the potential for new investments in green energy technologies.
The evolution of Singapore’s energy and chemicals sector will depend on regulatory support, technological advancements, and the pace at which businesses adapt to a lower-carbon economy.
