What's Happening?
Singapore GasCo Pte. Ltd., a state-owned company, is planning to secure long-term liquefied natural gas (LNG) supply contracts starting in early 2026. This initiative aims to support Singapore's transition
to low-carbon energy by 2035. The company, established in May 2025, centralizes the procurement and supply of natural gas, which currently accounts for 93.1% of the country's electricity generation. CEO Alan Heng stated that the company will issue requests for proposals to build a tailored LNG portfolio for Singapore. The strategy includes diversifying LNG sources to manage geopolitical and market risks, with 35% of supply from the US, 35% from the Middle East, mainly Qatar, and the remaining 30% from other regions. Singapore also imports 35% to 40% of its gas via pipelines from Indonesia and Malaysia.
Why It's Important?
The move to secure long-term LNG contracts is crucial for Singapore's energy security and its transition to renewable energy. By centralizing gas procurement, Singapore GasCo aims to lower costs and ensure reliable energy supply, which is vital given the intermittency of renewable energy imports. This strategy supports Singapore's goal of importing 6 gigawatts of low-carbon power by 2035. The diversification of LNG sources also helps mitigate geopolitical risks, ensuring a stable energy supply. This initiative reflects Singapore's broader efforts to balance its energy needs with environmental sustainability, positioning the country as a leader in the region's energy transition.
What's Next?
Singapore GasCo plans to start the procurement process in the first quarter of 2026. The company will work with existing power generators to transition to the new framework while maintaining current contracts. Additionally, Singapore is collaborating with Southeast Asian neighbors like Thailand and the Philippines to establish a shared emergency gas supply network. These steps are expected to enhance regional energy security and cooperation, further supporting Singapore's renewable energy goals.
