Singapore Increases LNG Purchases as Middle East Conflict Disrupts Supplies

Gate News message, April 20 — Singapore is purchasing additional liquefied natural gas (LNG) from alternative suppliers as the Middle East conflict disrupts shipments of the fuel used to generate electricity in the country. The Energy Market Authority (EMA) said some LNG shipments from the Middle East have been affected by the ongoing conflict. Singapore GasCo, established in 2025 to centralize natural gas procurement and supply, is making the purchases to ensure sufficient fuel to meet demand.

Around a fifth of global LNG previously flowed through the Strait of Hormuz before the conflict, with supplies now disrupted. Qatar’s Ras Laffan plant, the world’s largest LNG export facility, has suffered significant damage and suspended operations since March. Gas imports from Qatar made up less than 10 percent of Singapore’s electricity needs before the conflict. Singapore imports natural gas to meet approximately 95 percent of its electricity needs, with 40 percent coming via pipelines from Malaysia and Indonesia in 2025, and the remainder supplied by sea from markets worldwide.

Electricity and gas tariffs have risen in the April-June quarter due to climbing fuel prices, with the EMA warning of further and potentially sharper increases later in 2026. The Uniform Singapore Energy Price, a measure of wholesale prices, reached its highest level since June 2025 during the week of April 12 to 18, driven primarily by tightened supply. The Government has not yet tapped its LNG and diesel energy stockpiles. The EMA is pursuing a diversified energy approach, including renewable electricity imports and exploring low-carbon alternatives such as advanced nuclear, geothermal, hydrogen, and ammonia technologies, and has awarded conditional approvals to more than 8 gigawatts of proposed electricity import projects.