Indonesia gas supply cut unlikely to have much impact on Singapore electricity prices in short term: Tan See Leng

Singapore's electricity prices are unlikely to be significantly impacted in the short term by Indonesia cutting natural gas exports, according to Energy, Trade and Industry Minister Tan See Leng. The reduction in gas exports only accounts for under 2% of Singapore's daily gas consumption, Minister Tan stated at a People's Action Party (PAP) conference.

Minister Tan emphasized that Singapore's electricity prices are mainly influenced by global gas market trends, as the unit price of their gas is linked to key global indices. The country has implemented contingency measures to ensure a diversified energy supply and has multiple layers of defense, including LNG imports and standby facilities.

Singapore has been actively exploring alternative energy sources, such as biomethane, geothermal, and solar power, and is also studying the potential use of nuclear energy. The government maintains strong relations with Indonesia, built over many decades, to ensure the reliability and resilience of Singapore's energy supply.

Singapore imports natural gas through pipelines from Indonesia and Malaysia, as well as LNG shipments from international suppliers. In 2025, piped natural gas will constitute 43% of Singapore's total gas imports, while LNG will account for the remaining 57%. Minister Tan assured that the government will closely monitor the situation and take necessary steps to protect Singapore's gas import rights and interests.