Singapore is diversifying suppliers, adding storage and building new infrastructure to try to protect itself from growing risks of resource nationalism, Singapore’s minister for energy, trade and industry Tan See Leng said in a speech on Monday.
The remarks came as Indonesia began reducing natural gas exports to the city-state from Saturday, as President Prabowo Subianto seeks to bolster domestic supply.
Singapore’s energy market authority has said the country has sufficient supplies and that the cuts represent less than 2% of its total daily gas demand, and Tan said there is no concern of shortages.
“We can keep calm and carry on,” he said at the Singapore International Energy Week conference. “Our households and our businesses can be assured that our energy security is always at the top of our minds.”
Singapore plans to add more liquefied natural gas capacity to import from a wider array of suppliers, build new power plants and increase fuel stockpiles to guard against potential disruptions, Tan said.
“Singapore will not be able to insulate ourselves from global or regional shocks,” he said. “When there is a supply crunch, countries may also prioritise their own domestic needs, and this trend of resource nationalism is particularly concerning.”
While Indonesia is a major gas exporter, overseas shipments have declined in recent years as a growing share of output is directed to domestic use. Major liquefied natural gas markets include China, Japan and South Korea, while pipeline natural gas is sent to Singapore and Malaysia.
Indonesia is a top supplier of gas to Singapore – which depends on the imported fuel for nearly all of its power generation – but the island has significantly reduced its dependence on pipeline supplies in recent years as LNG shipments have grown.
“About half of our gas is imported as LNG from a global diversified portfolio of sources, such as the US, Africa, the Middle East, and Australia,” Tan said.
The country expects to increase its LNG throughput capacity by another 50% once its second import terminal comes online ahead of 2030, he said.
The country announced plans to build five new power plants coming online between 2026 and 2031 that will increase generation capacity by more than a quarter.
Tan separately announced a non-binding agreement between Saudi Arabia and the city-state to store Saudi crude oil in caverns beneath Jurong Island from the second half of 2027.
