Extensive gas strategy to propel Keppel

Yearly demand for gas is rising at 1.5% till 2040.

Keppel Corporation chief executive Loh Chin Hua expressed his optimism with the group's position in the offshore market amidst the industry downturn.

In the company’s annual report, Loh said the group is riding out the offshore downturn on a firm footing, anchored by its multi-business strategy.

"Whilst many other industry players struggle to keep afloat, Keppel is still in a good position to prudently invest for the future. Our balance sheet remains strong and will allow us to invest and take advantage of opportunities that the crisis may throw up," explained Loh.

He said that gas is expected to be the fastest-growing fossil fuel for the next few decades, with demand rising at 1.5% per annum from now to 2040, to make up a quarter of global energy demand.

"Keppel is well positioned to be an industry forerunner through an extensive gas strategy that spans the value chain from liquefaction to transportation to power generation," said Loh.

The chief also mentioned its partnership with Shell and the firm’s ambition of building a global bunkering network to serve ship owners.

"Being the forerunner in Liquefied Natural Gas (LNG) bunkering allows us to push the envelope for the use of LNG as a marine fuel, creating pull-through opportunities for our yards," he said.