1. 
   
   Operational Costs: As a major importer, Sembcorp' s procurement costs may increase with global natural gas prices, potentially affecting operational expenses.
2. 
   
   Contractual Benefits: Long-term contracts, such as the agreement with TotalEnergies to import up to 0.8 million tons of LNG annually over 16 years starting from 2027, could provide cost stability amidst market fluctuations. 
   totalenergies.com
   
   
    
3. 
   
   Revenue Implications: If higher natural gas prices lead to increased electricity tariffs, Sembcorp' s revenues from power generation could rise, depending on market regulations and demand elasticity.
4. 
   
   Renewable Energy Transition: Elevated natural gas prices might accelerate the shift to renewable energy sources. Sembcorp' s strategic plan aims to achieve 25GW of gross installed renewables capacity by 2028, aligning with this transition. 
   sembcorp.com
   
   
    

1. 
   
   Stronger Vietnam Presence: Vietnam is a fast-growing economy with increasing  foreign direct investment (FDI), especially in  electronics and automotive manufacturing. This project strengthens Sembcorp&rsquo s foothold in a high-demand region.
2. 
   
   Steady Revenue Growth: The logistics park will provide  recurring rental income, boosting Sembcorp&rsquo s  industrial and logistics business  alongside its existing  18 VSIPs.
3. 
   
   Strategic Location & Competitive Edge: Direct access to  China&rsquo s supply chain, ports, and tax incentivesmakes it attractive for businesses, ensuring strong tenant demand.
4. 
   
   Sustainability Focus: Achieving  LEED Silver certification  aligns with the growing preference for  green and energy-efficient  industrial spaces, potentially attracting high-quality tenants.
5. 
   
   Co-Development Reduces Risk: Working with  Hankyu Hanshin Properties & CRE Asia  spreads the investment risk while maintaining growth potential.

Phillip Securities Downgrades Sembcorp Industries to Accumulate from Buy, Price Target is SG$7.10

Impact on Sembcorp Industries:

1. Energy Generation and Supply:

• Oil Price Volatility: Sembcorp, as a major player in energy generation, particularly in markets like power generation, renewables, and oil & gas, would be impacted by the fluctuations in crude oil and natural gas prices.
  • Price Decline (Bearish Trend): If oil prices continue to fall or remain under pressure due to the OPEC+ production hike, this could reduce Sembcorp&rsquo s operational costs for oil-based power generation in the short term. However, a prolonged drop could also affect their upstream oil & gas exploration and production operations, possibly reducing profitability in that segment.
  • Natural Gas Impact: Natural gas prices holding above $3.99 and potentially rising past $4.23 would likely increase Sembcorp' s costs for power generation, particularly if they are reliant on natural gas for electricity generation. However, the company' s investments in renewable energy and more diversified power generation could cushion the effects of higher gas prices.

2. Renewables Investment:

• Long-Term Shift Toward Renewables: Sembcorp has been shifting towards clean energy solutions, including solar and wind, to reduce its reliance on fossil fuels. This strategy would insulate them from the volatility of oil and gas prices to some extent. If oil prices remain low, this could dampen the transition to renewables for some competitors, giving Sembcorp a competitive edge in the long run as demand for cleaner energy solutions continues to grow.
• Geopolitical and Tariff Risks: The U.S. tariffs on Chinese, Mexican, and Canadian goods could create disruptions in the supply chain for components used in renewable energy projects (like solar panels, wind turbines, or energy storage systems). If Sembcorp sources any materials from these regions, they may face increased costs or delays in their renewable energy projects.

3. Global Economic Slowdown:

• Energy Demand: The economic slowdown caused by tariffs could lead to weaker demand for energy globally. This would especially affect industrial users of energy, which might slow down the growth of Sembcorp' s power generation or energy trading business. A reduction in economic activity, especially in sectors that are energy-intensive, could reduce electricity consumption, which may hurt Sembcorp' s revenue in certain markets.
• Infrastructure Projects: Sembcorp also focuses on urban development, water, and infrastructure. If global economic activity slows due to trade tariffs and geopolitical tensions, there may be less demand for large-scale infrastructure projects, potentially affecting Sembcorp' s urban development business.

4. Currency and Trade Risks:

• Impact of Tariffs on Trade: Sembcorp operates across many global markets, so the new U.S. tariffs could affect their business with North America, especially if they import or export goods to the U.S. and are affected by the increased duties. Similarly, trade disruptions could lead to more challenging market conditions in certain regions.

Conclusion:

Louistan      ( Date: 05-Mar-2025 14:21) Posted: All these info is irrelevant for SCI which has established long term contracts for supply of Natural Gas.  dontbetray      ( Date: 05-Mar-2025 14:07) Posted: Natural Gas and Oil Forecast: Will OPEC+ Output Hike Trigger a Price Collapse? By: Arslan Ali Updated: Mar 04, 2025, 12:55 GMT+00:00 Key Points: OPEC+ confirms a 138,000 bpd output hike in April, raising concerns of oversupply and adding pressure to global oil prices. New U.S. tariffs on Canadian, Mexican, and Chinese imports could slow economic activity and weaken energy demand. Natural gas holds above $3.99, with buyers stepping in&mdash breakout above $4.23 could signal bullish momentum. Natural Gas +1.08% WTI Oil -0.30% Brent Oil -0.42%   Market Overview Oil prices extended losses as OPEC+ confirmed a planned output hike of 138,000 barrels per day in April&mdash the group&rsquo s first increase since 2022&mdash raising concerns of oversupply. Additional pressure came from new U.S. tariffs, with a 25% levy on Canadian and Mexican imports and an increase on Chinese goods to 20%. Analysts warn these measures could slow economic activity and dampen fuel demand. Meanwhile, geopolitical tensions continue to influence market sentiment, particularly regarding potential shifts in Russian energy flows. Advertisement Experts trade the markets with IC Markets Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spread   Despite speculation over sanctions relief, Goldman Sachs suggests Russia&rsquo s supply remains more constrained by OPEC+ targets than external restrictions. Natural Gas Price Forecast   Natural Gas (NG) Price Chart At $4.10, the price of  Natural Gas (NG)  is hovering just above its pivot point of $3.99, signaling a critical inflection zone. The 50-day EMA at $3.95 provides a near-term floor, while the 200-day EMA at $3.62 underscores a broader uptrend. A sustained hold above $3.99 keeps the bullish structure intact, with immediate resistance at $4.23 and a more significant hurdle at $4.44. However, a break below $3.99 could shift momentum, triggering a move toward $3.75 or even $3.55. The current consolidation suggests buyers are stepping in, but a definitive push past $4.23 would confirm strength. WTI Oil Price Forecast   WTI Price Chart U.S. crude (USOIL) is treading water at $68.01, sitting just below its pivot point of $68.37. The technical setup leans bearish in the short term, with the 50-day EMA at $69.88 acting as overhead resistance and the 200-day EMA at $71.53 reinforcing a broader downtrend. A failure to reclaim $68.37 could push prices lower, with immediate support at $66.59 and deeper downside risk toward $65.26. On the flip side, a decisive break above $68.37 could shift momentum, setting the stage for a move toward $70.32. Traders should watch for volume confirmation&mdash if buyers step in above resistance, it could signal renewed upside, but continued weakness below $68.37 may keep oil under pressure. Advertisement   Brent Oil Price Forecast   Brent Price Chart Brent crude (UKOIL) is trading at $71.06, dipping just below its pivot point of $71.89 and signaling potential weakness. The 50-day EMA at $73.34 and the 200-day EMA at $75.03 suggest a bearish bias in the broader trend. If prices fail to reclaim $71.89, sellers may push the market lower, with immediate support at $69.88 and further downside risk toward $68.66. However, a break above $71.89 could shift sentiment, targeting resistance at $73.67 and potentially $74.89. The price action remains in a tight range, with traders looking for confirmation.  A sustained move above resistance could trigger buying interest, while continued weakness below $71.89 may keep Brent under pressure in the near term

Market Overview

Oil prices extended losses as OPEC+ confirmed a planned output hike of 138,000 barrels per day in April&mdash the group&rsquo s first increase since 2022&mdash raising concerns of oversupply. Additional pressure came from new U.S. tariffs, with a 25% levy on Canadian and Mexican imports and an increase on Chinese goods to 20%.

Analysts warn these measures could slow economic activity and dampen fuel demand. Meanwhile, geopolitical tensions continue to influence market sentiment, particularly regarding potential shifts in Russian energy flows.

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Experts trade the markets with IC Markets

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spread

 

Despite speculation over sanctions relief, Goldman Sachs suggests Russia&rsquo s supply remains more constrained by OPEC+ targets than external restrictions.

Natural Gas Price Forecast

 

WTI Oil Price Forecast