Singapore GasCo to buy more LNG cargoes if needed, says EMA, as global energy concerns rise

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SINGAPORE – Singapore GasCo, established last year to centralise the procurement and supply of natural gas, will step in to fill any gaps in the availability of liquefied natural gas (LNG) if needed by power plants here, said the Energy Market Authority (EMA) on March 13.

An EMA spokesperson told The Straits Times that the power regulator is in close contact with gas suppliers and power generation companies, or gencos, on the industry’s efforts to secure energy supplies.

About 95 per cent of Singapore’s power generation comes from natural gas – about half of which is piped in – from neighbouring countries, while the rest is imported in the form of LNG in specialised vessels called LNG carriers.

But several global LNG suppliers, including Shell, have issued force majeure notices this week informing customers in Asia of unforeseeable circumstances that prevent them from fulfilling their supply contracts.

“Singapore GasCo stands ready to procure additional LNG cargoes if needed,” EMA said.

The force majeure notices follow QatarEnergy’s decision last week to suspend operations at its Ras Laffan LNG plant – the world’s biggest LNG export facility – after it came under attack amid the ongoing conflict in the Middle East.

Hostilities in the region have effectively closed the Strait of Hormuz waterway that connects the Persian Gulf to the Indian Ocean and handles a fifth of the world’s oil and 19 per cent of LNG supplies.

Shell is one of Singapore’s four licensed LNG importers. The other three are ExxonMobil, Pavilion and Sembcorp.

EMA said that while Shell acquired Pavilion in 2025, they continue to hold separate importer licences and must honour the contracts with existing customers.

The EMA spokesperson noted that the importers are portfolio players with access to gas supplies from multiple sources globally. However, GasCo can also secure energy supplies from other sources if necessary.

Singapore GasCo has a mandate to centralise the procurement of new natural gas supplies for the power sector going forward. That means importers will continue to honour their existing contracts with local gencos.

Singapore’s Minister-in-charge of Energy and Science and Technology, Dr Tan See Leng, said in a Facebook post on March 12 that measures are in place to ensure that Singapore has enough energy to meet its needs.

He said Singapore has established a fuel stockpile comprising a mix of gas and diesel, which power generation companies can tap if there is a severe disruption to supplies.

However, Singapore has not made public the size of these reserves and estimates on how long they will last.

Dr Tan said on a CNA podcast show on March 12 that the exact amount cannot be disclosed for security reasons, but the reserves are “enough to last for months”.

Industry sources said LNG supply chains will become more complex the longer Hormuz remains closed. Hence, Singapore might have to tap its reserves if the Middle East situation does not improve in the next few weeks, they added.

EMA reiterated that Singapore has diversified gas supply sources and also a fuel stockpile comprising a mixture of gas and diesel, which power generation companies can draw from should there be a severe disruption to gas supplies.