SINGAPORE: Singaporean state gas buyer GasCo has launched its first procurement exercise to secure term supplies of liquefied natural gas (LNG), according to Gan Siow Huang, the Energy, Trade and Industry Minister.
The city-state, which relies on natural gas to generate about 95% of its electricity, is also studying the feasibility of a third LNG import terminal on the northeastern island of Pulau Tekong, Gan said at the Asia Gas Markets conference yesterday.
The moves come as Singapore prepares to expand its gas-fired power generation capacity.
On Monday, the government said it would add five new gas-fired power plants to raise its electricity generation capacity by around 26% early next decade from around 12 gigawatts at present.
Gan did not provide additional details on GasCo’s procurement exercise or the size of the potential third import terminal.
GasCo, which was established in 2025 to centralise Singapore’s gas procurement and supply, previously said it would seek long-term LNG supplies in the first quarter of this year for delivery from 2028 onward, moving to secure multi-year contracted volumes rather than relying on one-off spot purchases.
The country is expected to face a gas supply gap of about three million tonnes in 2028 and 2029, which is expected to widen to around six million tonnes by 2035.
The US-Israeli war on Iran broke out in late February, pushing global gas prices to record highs. Singapore imports LNG as well as piped gas from neighbouring Malaysia and Indonesia.
On Saturday, Indonesia’s upstream oil and gas regulator said it had cut pipeline gas exports to Singapore by 31 million standard cubic feet per day, to divert supply to its domestic power sector. — Reuters
