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INDUSTRY INSIGHTS
Oil & Gas
2025 Oil & Gas Outlook:
Asia's Strategic Shift Toward Gas, Sustainability, and Market Realignment
As we navigate through 2025, the oil and gas sector in Asia, particularly in Singapore, is experiencing a pivotal shift. Companies are re-evaluating their portfolios, embracing cleaner energy solutions, and adjusting to evolving market dynamics. Here's an overview of the key trends influencing the industry:
1. Expansion of Natural Gas Projects
Asia is witnessing a significant increase in natural gas projects, with over 130 new oil and gas projects set to commence production by 2025. Countries like China, Malaysia, and Indonesia are leading this expansion. For instance, Indonesia and Malaysia are expected to dominate oil and gas production outlooks from greenfield projects over the next six years. This surge is driven by rising energy demand and the need for cleaner energy sources (Energies Media Staff, 2019).
2. Strategic Shifts in Oil Supply
Asian refiners anticipate that Middle Eastern crude suppliers will focus on defending their market share in the Far East. This shift is influenced by factors such as the availability of U.S. crude and competition from other regions. This strategic realignment is expected to impact pricing and supply dynamics in the Asian oil market (Vahn G. et al., 2024).
3. Development of Alternative Fuel Standards
Singapore is actively working on formulating alternative-fuel standards by 2025. These standards aim to support the adoption of cleaner fuels, including methanol, ammonia, and hydrogen, in various sectors. The Maritime and Port Authority of Singapore (MPA) has published a new Technical Reference (TR) 129 on Methanol Bunkering, providing a comprehensive framework for the safe and efficient use of methanol as an alternative fuel for bunkering operations (MPA Singapore, 2025).
What Does It Impact AME Group?
1. Opportunities in Gas Infrastructure
With the expansion of natural gas projects in Asia, AME can leverage its expertise in advanced manufacturing to support the development of gas infrastructure. Additionally, AME can leverage its expertise as a premium buying house with value-added services to support the Maintenance, Repair and Overhaul (MRO) operations.
2. Engagement in Alternative Fuel Initiatives
As Singapore develops alternative-fuel standards which require specialized components, AME has the opportunity to participate in projects related to the manufacture or retrofit of components to support methanol or ammonia fuel systems.
3. Adaptation to Market Dynamics
As Middle Eastern crude suppliers defend their dominance, the increase in competition from U.S.is likely to create volatile pricing. AME can leverage on its expertise in supply chain distribution to align with the evolving market dynamics and expand its market share.
Conclusion
The oil and gas industry in Singapore and Asia is undergoing significant transformations, driven by the expansion of natural gas projects, strategic shifts in oil supply, and the development of alternative-fuel standards. AME Group is well-positioned to capitalize on these developments by aligning their strategies with the evolving industry landscape.
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Citation
Energies Media Staff (2019), Indonesia and Malaysia Dominate Oil and Gas Production Outlook From Greenfield Projects in Southeast Asia Over Next Six Years. Retrieved 25 April, 2025 from
Vahn G., Zhou O. & Mohanty S. (2024). COMMODITIES 2025: Asian refiners expect Middle East crude suppliers to defend Far East market share. S&P Global. Retrieved 25 April, 2025 from
MPA Singapore (2025). Singapore launches new standard on methanol bunkering, paves way for maritime industry’s transition to sustainable alternative fuels. Retrieved 25 April, 2025 from