Singapore and Japan sign energy pact as Dr Tan assures supply security

Singapore and Japan signed a bilateral agreement on 15 March 2026 to deepen cooperation on energy, sustainability and climate change, as Manpower Minister Tan See Leng reassured Singaporeans that the country's energy supply remains secure despite disruptions stemming from the ongoing Middle East conflict.

The agreement was inked in Tokyo, where Dr Tan — who also holds the portfolio of Minister-in-charge of Energy and Science and Technology — was attending the Indo-Pacific Energy Security Ministerial and Business Forum, co-hosted by the United States and Japan.

The forum, convened for the first time in 2026, brought together ministers and business leaders to discuss energy security across the Indo-Pacific region.

Singapore's energy supply resilience

In a video posted on his social media pages on 15 March, Dr Tan said natural gas fuels 95 per cent of Singapore's electricity generation, all of which is imported.

He noted, however, that roughly half of Singapore's natural gas supply is piped directly to the country, meaning it will not be affected by shipping disruptions linked to the Middle East conflict.

Dr Tan described this as one of Singapore's "four lines of defence" for energy security.

The other measures include importing gas from sources outside the Middle East — such as Australia and the United States — maintaining domestic fuel stockpiles, and ensuring all power plants retain the ability to switch from natural gas to diesel when necessary.

"I want to assure all of our fellow Singaporeans that our energy is secure, even in the face of these disruptions," he said.

Price rises expected

Despite the assurances on supply security, Dr Tan acknowledged that global energy prices are rising, and that Singapore's electricity prices will likely increase in the months ahead.

He urged Singaporeans to help offset the impact by conserving energy and adopting more energy-efficient appliances.

Terms of the Singapore-Japan agreement

The agreement was signed by Dr Tan and Japan's Minister of Economy, Trade and Industry, Ryosei Akazawa.

Under the pact, the two countries will collaborate more deeply on cross-border electricity imports and the development of low-carbon hydrogen and ammonia.

They will also work together on carbon capture, utilisation and storage; civil nuclear energy; liquefied natural gas (LNG); and advanced grid system enablers.

The Ministry of Trade and Industry (MTI) said the collaboration may include policy exchanges, the facilitation of business and financial cooperation, and efforts to harmonise standards and regulations across both countries.

Singapore and Japan will also encourage industry players and financial institutions to invest in low-carbon energy projects, MTI added.

The two countries have previously cooperated on energy-related ventures. In 2025, Singaporean engineering firm Seatrium secured a multi-million-dollar contract from Japanese firm Penta-Ocean Construction to build a heavy-lift vessel for offshore wind installations.

Growing regional energy demand

Speaking at the forum, Dr Tan said global energy demand will continue to rise even as the Middle East conflict pushes up prices and disrupts markets.

He noted that Asia is particularly exposed, as many countries in the region import the majority of their energy.

"Yet, we expect the energy demand to continue to keep growing as our economies become more reliant on electricity to drive growth in advanced manufacturing, AI and electric vehicle adoption," he said.

Dr Tan stressed that countries must work together to build a more resilient energy future, calling reliable and secure supply "critical" given the current environment.

Singapore's diversification strategy

Describing Singapore as a "geographically disadvantaged... very small country", Dr Tan said the Republic diversifies its energy portfolio and pursues all feasible options to strengthen energy resilience.

Natural gas, he said, will continue to underpin the country's energy system "for the foreseeable future".

Singapore is investing in its gas supply chain and constructing a second LNG terminal to expand capacity. The government has also established GasCo, a fully state-owned entity, to centralise gas procurement from diverse sources.

On solar energy, Dr Tan said Singapore — one of the most solar-dense countries in the world — reached its target of installing two gigawatt-peak (GWp) of solar capacity five years ahead of its 2030 deadline, and is now aiming to raise this to three GWp by 2030.

He acknowledged, however, that solar can supply at most about 10 per cent of Singapore's electricity demand, given the country's small and densely built-up land area.

Nuclear energy under study

Dr Tan said Singapore is seriously studying advanced nuclear energy technologies, including small modular reactors (SMRs), which could offer a safe, reliable and cost-competitive power source for the land-scarce island.

Singapore is partnering international leaders in nuclear energy — including the United States and South Korea — to build expertise in nuclear safety and technology assessment.

ASEAN Power Grid

On the regional front, Dr Tan said Singapore is working with its neighbours on the ASEAN Power Grid, an initiative aimed at enabling cross-border electricity trading in South-east Asia.

Once fully realised, he said the grid would significantly strengthen regional energy resilience, allowing countries to diversify supply sources and respond more effectively to system disruptions.