Singapore Is Procuring More LNG as Iran War Cuts Some Supply
(Bloomberg) -- Singapore is getting additional liquefied natural gas from outside of the Middle East, as the war in Iran chokes supply from the region, according to a government body.
Singapore GasCo Pte, a state-owned entity that was established last year, is making the purchases as “some LNG shipments from the Middle East have been affected by the ongoing conflict,” the Energy Market Authority said in an emailed response to Bloomberg.
No shipments of the super-chilled fuel have been exported from the Persian Gulf since the US and Israel began strikes on Iran in late February. Before the conflict, about a fifth of global LNG went through the Strait of Hormuz, while damage to parts of the world’s largest export plant in Qatar last month threatens to curb some production for years.
When the war in the Middle East began, Singapore’s gas imports from Qatar made up less than 10% of its electricity needs, EMA said. Singapore uses the fossil fuel as its main source for power generation, and gets about 60% of its imports in the form of seaborne LNG shipments.
“As part of measures to strengthen our energy resilience, we require every power generation company to maintain diesel reserves as backup fuel,” EMA said. “Our power plants are designed to operate on both natural gas and diesel.”
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