Singapore will remain a major importer of crude oil, refined fuels and LNG over our 10-yearforecast period, largely to offset demand from its world-class shipping industry and for re-exportingpurposes, even as a small and increasingly fuel-efficient domestic market offers little room for incrementalgrowth. Tightening fuel regulations in the global shipping sector in the coming years will drive the domesticfuel consumption mix hugely in favour of lower-sulphur middle distillates, at the expense of heavier bunkerfuels.
Latest Updates And Key Forecasts
In February 2017, Singapore announced the decision to introduce a carbon tax of USD10.0-20.0 pertonne of greenhouse gas emissions from 2019. Short-term impact will be limited, though in the longerterm,the tax could drive-up cost and squeeze the profit margins of domestic power producers andrefiners.