Singapore faces energy risks with ‘resource nationalism’ that undermines contracts: Tan See Leng

Singapore's energy minister Tan See Leng warned on Monday that the nation faces heightened risk of energy supply disruptions due to "resource nationalism" undermining contracts. At the Singapore International Energy Week, Tan acknowledged the trend of countries prioritizing domestic energy needs during shortages, which could jeopardize established agreements.

His remarks followed Indonesia's recent curtailment of natural gas exports to Singapore, prompting Singapore's gas importer Gas Supply to investigate potential contract breaches. Tan noted that the Indonesian reduction is only about 2% of Singapore's daily gas demand, and emphasized that the Republic has built robust defenses against supply disruptions over the years.

Tan assured that Singapore will maintain its multiple lines of defense, strengthen partnerships globally, and expand its options to ensure energy resilience. Singapore GasCo, the country's primary gas buyer, is currently soliciting proposals for gas procurement beyond 2028 and expects to award its first contracts next year. Additionally, Singapore is exploring collaboration with Thai energy company PTT to optimize liquefied natural gas supply.

On the storage front, Singapore and Saudi Arabia plan to store Saudi crude oil underground at Jurong Island starting in the second half of 2027. This partnership aims to bolster the resilience of the Saudi crude oil supply chain in Southeast Asia and contribute to Singapore's energy security amidst potential disruptions.

Tan highlighted that Singapore already imports half of its gas as LNG and is expanding its LNG capacity by 50% with the completion of its second terminal by 2030. The nation is also expanding its LNG throughput capacity, signing agreements with QatarEnergy and Abu Dhabi National Oil Company, and exploring new partnerships to enhance supply chain resilience.