Singapore bracing for 'bumpier ride' as Middle East conflict hits global energy supply
Singapore's energy minister warns of rising electricity prices and supply disruptions as the Middle East conflict escalates, while affirming the city-state's stockpiles remain intact and contingency plans are in place.
- Singapore's energy stockpiles remain untouched, but prices are expected to rise as Middle East conflict escalates.
- The attack on Qatar's Ras Laffan facility could disrupt global gas supply for three to five years.
- Minister Tan urged Singaporeans to conserve energy and said the government has reserves ready to deploy.
Singapore has not yet needed to draw on its national energy stockpiles, but the city-state must prepare for a "bumpier ride ahead" as the Middle East conflict drives significant disruptions to global oil and gas supply chains, the minister responsible for energy said on Friday, 20 March 2026.
Minister-in-charge of Energy and Science and Technology Tan See Leng made the remarks during a visit to the Singapore LNG (SLNG) Terminal, speaking to reporters as the regional and global energy outlook darkened following a series of strikes on major production and liquefaction facilities.
The Middle East conflict, Dr Tan said, has turned significantly more serious with no end to hostilities in sight.
The recent attack on Iran's oil facilities on Kharg Island and the retaliatory strike on the Ras Laffan liquefaction facility in Qatar have delivered what he described as a major blow to the global oil and gas supply chain.
"Even if tomorrow, the war stops, the rebuilding of this Ras Laffan facility would take between three and five years, so you can expect that kind of disruption," Dr Tan said.
Singapore's energy position
Singapore currently generates about 95 per cent of its electricity from imported natural gas, making it acutely exposed to global supply disruptions.
The SLNG Terminal supplies around 50 per cent of Singapore's natural gas demand for power generation. It has the capacity to support all of the country's current needs if required.
Dr Tan said Singapore has strengthened its energy resilience over the years through measures including the centralised procurement of gas and requirements that companies maintain their own stockpiles.
He previously told CNA that Singapore holds months' worth of energy stockpiles, and confirmed on Friday that the country has not yet needed to draw on those reserves.
Singapore's current energy situation remains stable, Dr Tan said. However, he warned that as the conflict evolves and supplies are interrupted or reduced, electricity prices will inevitably rise.
The impact would extend beyond power bills. Products such as fertilisers and even helium — which is used at the SLNG Terminal itself — would also be affected, he noted.
"You can imagine that this impact would really be amplified across various streams ... so we need to really brace ourselves for a bumpier ride ahead," Dr Tan said.
Government response and readiness
The minister said the government is monitoring developments closely and is holding resources in reserve to deploy when conditions worsen.
"We are monitoring the situation very closely, because we want to also make sure that we have dry powder for us to use when the situation gets worse," he said.
Some measures announced at Budget 2026 will provide assistance, Dr Tan added, and the government is prepared to introduce further steps if necessary.
Government officers have been working around the clock to ensure supply chains remain intact, he said, adding: "Rest assured, we will pull through this difficult period together. We will maintain our reputation, our credibility as well as our resilience."
Calls for conservation
Dr Tan called on both Singaporeans and businesses to play their part through greater energy efficiency and conservation.
He suggested practical steps including switching to electric vehicles, setting air-conditioning units to higher temperatures, and turning off appliances when not in use. He also encouraged the installation of solar panels.
On reducing transport-related energy consumption, Dr Tan suggested carpooling and increased use of public transport. "I think those measures would help," he said.
An existential concern
Dr Tan, who also serves as manpower minister, framed the current crisis as a reminder of energy's fundamental importance to Singapore's survival as a nation.
Even the city-state's desalination plants depend on energy to function, he noted — meaning that disruptions to the energy supply would cascade across the most basic infrastructure underpinning daily life.
"I cannot underscore it more. It is existential for us," Dr Tan said.
