Fueling change

Union Gas has been fueling customers in Singapore for over 40 years, with its distinct blue trucks visible on roads across the island.

As one of the country’s major liquefied petroleum gas (LPG) players, Union Gas and its subsidiaries have ownership and control of the entire LPG chain – from procurement to bottling, and from storage to wholesaling and retailing – serving domestic households, commercial and industrial customers island-wide.

While the group’s LPG business serves as its primary revenue generator, contributing approximately 80 percent of total sales annually, it is also a provider of natural gas and diesel.

Since second-generation leader Teo Hark Piang took over as Executive Director and CEO in 2018, the company has reported some of its highest earnings, and that is despite the COVID-19 pandemic.

“The last five years have been hard for our customers,” Hark Piang explains. “The pandemic has impacted our food and beverages market, leading many of our customers to close shops. Conflicts in the Middle East and Eastern Europe have also led to fluctuations in fuel prices yet, despite this, we persevered. It was only in the last two years that we recovered financially from the pandemic.

“While oil prices remain high and inflation has increased, we have done our best to maintain reasonable prices and absorb much of the increased cost to support our customers throughout the pandemic and beyond.”

Part of this success is thanks to the support of Union Gas’ long-term partners such as Lim Long Soon Enterprise and Ito Corporation Group.

“Through our actions, it shows that we are sincere and stand by our slogan, ‘Trusted for generations.’”

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“Working with Union Gas Holdings for over three decades has been a privilege. The company’s unwavering support and trust in our products have greatly contributed to our success. We deeply value the strong partnership we’ve built with Union Gas Holdings and are fortunate to collaborate with such a reliable and supportive company.” – Ken Lim, Director, Lim Long Soon Enterprise

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Hark Piang also attributes the company’s resilience and success to its investment in business continuity planning.

“If there’s one lesson we learned from the pandemic, it’s the importance of business continuity planning,” he says. “We were lucky to have different factories and offices located across Singapore, which helped during the pandemic because it allowed us to segregate everything. When times are calm and stable, it may seem like we are spending unnecessarily, but when the pandemic struck, it really proved beneficial for us.”

Despite the challenges of the last five years, Union Gas has doubled in size thanks to several acquisitions, which have contributed to a 134.5 percent increase in net profit in 2023 compared to the previous year. Yet Hark Piang refuses to rest on his laurels, seeing opportunities for even greater performance.

“We have experienced significant growth in both our top and bottom lines. However, our bottom line did not increase as much as we had intended. This is due to increased expenses following the pandemic. As a result, our performance in terms of top line compared to bottom line is not as strong as it should be. I believe the ratio is a bit off,” he explains.

The green transition

Despite a performance that would satisfy most leaders, Union Gas is fully aware of the changing needs of the Singapore economy and is already looking ahead to the future of energy generation, storage and distribution.

“Over the next three-to-five years we will be looking into new energy solutions,” Hark Piang says. “We have already started with electric vehicle charging ports and are now looking into solar. While we’ll concentrate on our core LNG business, I believe the next growth will come from sustainable energy.”

As a result, Union Gas is seeking synergistic partners to strengthen its capabilities in this area. One recent example is the company’s recent memorandum of understanding with Deltrix, a Hong Kong-based provider of integrated charging solutions.

Union Gas currently operates four EV charging nozzles at its headquarters and plans to add 12 more at the same location over the next two years. Beyond this, Union Gas intends to develop this into an adaptable multi-fuel and energy facility with potential battery storage systems and EV charging infrastructure, supported by an existing natural gas transmission pipeline. Once established, the company is keen to explore opportunities across other markets in South-East Asia and Japan.

The company is also in the early stages of exploring opportunities with used cooking oil, collecting it to produce biodiesel.

Aside from assisting Singapore with the green transition, Union Gas is also working to reduce its Scope 1 carbon emissions by replacing its fleet of over 200 delivery trucks with low-emission vehicles, while also optimizing its delivery routes to reduce fuel use.

Leadership lessons

Having seen the company through good times and bad, Hark Piang is a firm believer in perspective and ambition.

“You need to stay humble and hungry. It’s often said that strong men create good times but good times create weak men. It’s a cycle, so you need to stay strong and remain hungry. This means looking ahead because the world is evolving and things can change really fast,” Hark Piang says.

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“That’s why you can’t just plan for one or two years; your vision needs to extend five or even 10 years ahead. Companies need to evolve with the changing times. You need to step out of your comfort zone and innovate.”

Union Gas has withstood the test of time for more than 40 years of operations and believes that its resilient and evolving business model will continue to serve Singapore’s needs for essential gas and fuel products.

“We have a strong team and a strong foundation, so I believe the company will be able to navigate whatever the future brings,” Hark Piang enthuses.