The Singapore government has established the Singapore Central Gas Agency, which can purchase additional natural gas for local power plants when necessary to ensure that Singapore’s energy supply does not experience shortfalls due to volatile Middle East situations.
Established last year, the Singapore Central Gas Agency centrally procures natural gas for local power plants from the global market, replacing the previously fragmented procurement model.
In response to queries from Lianhe Zaobao on the 13th, the Energy Market Authority said it is working closely with natural gas importers and power generation companies to safeguard energy supply, including seeking alternative sources when necessary.
"Singapore’s natural gas supply comes from diversified sources and there are reserves of natural gas and diesel, which can be deployed by power plants in the event of severe supply disruptions. If needed, the Central Gas Agency is prepared to procure more liquefied natural gas."
Currently, about 95% of Singapore’s power generation fuel relies on imported natural gas. Manpower Minister Dr. Tan See Leng, who also oversees energy and technology affairs, previously revealed that Singapore does not overly depend on natural gas from the Middle East, and that existing energy reserves are "enough to last for several months."
According to data provided by the Energy Market Authority, 43% of last year’s imported natural gas was delivered via pipeline from Malaysia and Indonesia, while the remaining 57% consisted of liquefied natural gas from the Middle East, Africa, the United States, Australia, and other regions. Due to cost, logistics, and market factors, the share imported from the Middle East each month is not fixed.
Even if the current fuel supply is sufficient, the global increase in energy prices spurred by Middle East tensions may still drive up Singapore’s electricity prices. In addition, gasoline prices have surged continuously for more than a week and, as of Friday, have exceeded the record set during the 2022 Russia-Ukraine war period.