Singapore’s importance in oil is not based on reserves or extraction. The city-state imports crude oil and petroleum products, processes large volumes in sophisticated refineries, stores cargoes, trades them and supplies ships and markets across Asia. Geography made this model possible. Singapore sits beside the Strait of Malacca, a central passage between Middle Eastern producers and Asian consumers.
This position allowed Singapore to develop an oil economy far larger than its domestic market would require. Its refineries serve regional customers, while its terminals and trading companies connect producers, shipowners, airlines, chemical manufacturers and fuel distributors. Oil matters to Singapore less as a natural resource than as a high-value logistics and manufacturing industry.
In 2024, petroleum products represented the largest share of Singapore’s energy imports, while petroleum-product exports reached 77 million tonnes of oil equivalent. Imported molecules move through a dense system of jetties, tanks, pipelines, refineries and commercial contracts before being sold into other markets.
Jurong Island and Pulau Bukom Form the Industrial Core
Singapore’s downstream oil industry is concentrated around Jurong Island, Pulau Bukom and nearby industrial sites. Jurong Island is a reclaimed industrial zone of about 3,000 hectares and hosts more than 100 energy and chemicals companies. Refineries, petrochemical plants, storage terminals and utilities operate close together, allowing one company’s output to become another company’s feedstock.
ExxonMobil operates Singapore’s largest refinery complex. Its two connected sites have a combined nameplate capacity of about 592,000 barrels per day. The complex produces transport fuels, lubricant base stocks, waxes and aromatics for Singapore and export markets across the Asia-Pacific region. It is designed to convert different parts of a crude barrel into higher-value products for industrial and commercial users.
The second major system is Aster Chemicals and Energy’s Pulau Bukom complex. Aster was created after a joint venture between Indonesia’s Chandra Asri Group and Glencore completed the acquisition of Shell’s former Singapore energy and chemicals assets in April 2025. The Bukom refinery has capacity of about 237,000 barrels per day and is integrated with a large ethylene cracker and chemical facilities on Jurong Island.
The ownership change linked Singapore’s refining base more closely with regional demand in Indonesia. Chandra Asri can use the complex to secure petroleum products and chemical feedstocks for wider Southeast Asian operations, while Glencore contributes global trading and supply capabilities.
Refining Competitiveness Depends on Higher-Value Outputs
Singapore’s refineries face a difficult regional market. Large new plants in China, India and the Middle East have increased competition. Older refineries can no longer rely only on processing crude into standard petrol, diesel and fuel oil. They need efficient logistics and products with stronger margins.
ExxonMobil’s recent investment reflects this pressure. New facilities at its Singapore complex began producing additional Group II lubricant base stocks in 2025. The project converts lower-value refinery residue into higher-value lubricants and distillates used in engine oils, gear oils, marine lubricants and industrial greases.
Aster is following a different but related path. It plans to bring a 70,000-barrel-per-day condensate splitter into operation during the second half of 2026, raising combined crude and condensate processing capacity to about 307,000 barrels per day. Repairs to Bukom’s single buoy mooring are also intended to allow very large crude carriers to discharge cargoes directly, reducing transport costs.
Aster is also examining how to use spare storage capacity at Bukom. Storage is a major part of Singapore’s oil advantage because traders need space to hold crude and refined products while responding to changing prices, freight rates and regional demand. A refinery can therefore earn revenue by processing oil and supporting the wider trading market.
Marine Fuel Extends Singapore’s Reach Beyond Refining
Bunkering gives Singapore another role that few refining centres can match. Ships calling at or passing near the port can purchase fuel, lubricants and related services without making a large diversion from major trade routes. Singapore has developed fuel-quality rules, licensed suppliers, digital documentation and a large network of bunker barges and terminals.
Marine fuel sales reached a record 56.77 million tonnes in 2025. Most of that volume still came from petroleum-based bunker fuels, although sales of alternatives such as biofuels and liquefied natural gas continued to rise. Conventional oil therefore remains commercially important even as shipping companies test lower-carbon fuels.
Bunkering also strengthens Singapore’s trading and storage businesses. Refiners can sell residual and distillate products into the marine market, traders can blend fuels to meet different specifications, and terminal operators can manage inventories close to customers. A competing port may offer lower costs in one area, but Singapore combines fuel availability, finance, legal services, shipping expertise, quality control and physical infrastructure in one location.
Carbon Costs Are Changing the Refining Model
Singapore is not planning an immediate end to refining, but it is changing what it expects from the industry. The national carbon tax rose to S$45 per tonne for 2026 and 2027, increasing pressure on emissions-intensive facilities. Refiners and petrochemical plants must reduce energy use, improve process efficiency and consider lower-carbon power, carbon capture, hydrogen and alternative feedstocks.
The government wants Jurong Island to remain a competitive energy and chemicals centre while producing more sustainable materials and serving as a test site for new technologies. Future investment must achieve two goals at once: keeping plants commercially viable and lowering the emissions associated with each unit of output.
The shift will not remove petroleum from Singapore’s economy. Aviation, shipping, petrochemicals and regional fuel demand will continue to support oil-related activity. However, sustainable aviation fuel, biofuel blending, low-sulphur marine fuel, advanced lubricants and chemical feedstocks may become more important than growth in conventional road fuels.
Singapore’s Oil Future Is a Competition for Regional Relevance
Singapore’s oil sector depends on imported feedstock, international shipping, regional demand and global refining margins. It also faces stronger competition from newer and often larger industrial complexes.
Its advantage is the complete system surrounding the refinery gate. Deep-water access, storage, trading liquidity, technical skills, reliable regulation and connections to petrochemical plants allow Singapore to create value from oil without producing it. Recent investments by ExxonMobil and Aster show that companies still see a future in the hub, but that future depends on upgrading assets rather than preserving them unchanged.
The key question is whether Singapore can remain the preferred place in Asia to refine difficult feedstocks, manufacture high-value petroleum products, store cargoes, trade risk and supply ships while carbon costs rise. If it succeeds, oil will continue to support the country’s industrial and maritime position even as it prepares for a lower-carbon energy system.
