Singapore prioritising ‘dry powder’ to intervene if Middle East conflict worsens: Tan See Leng

[SINGAPORE] Singapore has not needed to dip into its energy stockpiles amid the escalating Middle East conflict, and the government is ensuring that it has enough “dry powder” to intervene when needed, said Minister-in-charge of Energy and Science and Technology Tan See Leng.

“We do have stockpiles that will last us for months, and that position has not changed. What has changed is the Ras Laffan facility being bombed and significantly damaged,” Dr Tan told reporters on Friday (Mar 20).

He was referencing Iran’s Mar 18 attack on the Ras Laffan facility in Qatar, the world’s largest liquefied natural gas (LNG) export plant. The attack, in retaliation against US strikes on Iran’s key oil export hub Kharg Island, led to a spike in global gas prices.

These developments have “very serious” implications. Said Dr Tan: “Even if the war stops tomorrow, the rebuilding of the Ras Laffan facility would take between three to five years.”

As energy supplies get “truncated”, electricity tariffs could go up, he added, echoing an earlier warning from the Energy Market Authority. Key resources such as fertiliser could also get more expensive.

“We need to really brace ourselves for a very bumpy ride ahead,” he said on the sidelines of a visit to the Singapore LNG Corporation’s (SLNG) terminal on Jurong Island.

Singapore has planned for various scenarios in the conflict, with “different levels which will trigger different types of measures”, Dr Tan noted. “I am not at liberty at this point in time to share which level we are at, but I think we are prepared for multiple contingencies.”

Singapore relies on imported natural gas – both in piped and liquefied forms – to generate 95 per cent of its electricity. In 2025, 43 per cent of its gas imports comprised piped natural gas from Malaysia and Indonesia. The remaining 57 per cent was LNG from different parts of the world, including Qatar.

About 42.5 per cent of Singapore’s LNG imports in 2025 originated from Qatar, based on an estimate by research outfit Rystad Energy. Singapore does not disclose this figure.

“Multiple lines of defence”

Dr Tan noted that this year’s Budget measures, which include initiatives to defray utility costs, will kick in soon.

While the government is ready to come up with more measures if necessary, “we want to also make sure that we have dry powder for us to use when the situation gets worse”, he said.

Dr Tan highlighted Singapore ’s “multiple lines of defence” to respond to the conflict – it works with energy suppliers all over the world and has long-term gas contracts, such as for the gas piped from Malaysia and Indonesia.

While the Republic did not “plan for a war of this magnitude”, its supply diversification efforts have worked in an “optimal” manner, he pointed out, adding: “We will not hesitate to step in to intervene and to help our businesses as well as our households. What we are looking at is how long this volatility, this crisis, will last.”

Dr Tan urged consumers and businesses to switch to more energy-efficient appliances and adopt measures such as increasing air-conditioning temperatures and installing solar panels.

Asked about the possibility of Singapore facing fuel shortages, Dr Tan said: “Energy, I cannot underscore it more – it is existential for us – and we should treat energy as one of our most precious resources.”