APPEC: Singapore readjusts energy resilience portfolio amid Middle East crisis: SLNG CEO

Singapore has been able to readjust and reclaim its entire energy resilience portfolio, and find replacement barrels through GasCo while also diversifying its energy sources to tackle the challenges posed by the Middle East war, Singapore LNG Corp. (SLNG) CEO Leong Wei Hung said at an industry event Sept. 9

The country has established a strategic storage capacity to cope with uncertain geopolitics, Leong said at APPEC 2026, hosted by S&P Global Energy, in Singapore.

"On a very positive note, we haven't touched that at all," he continued, noting that the country's trading partners had also been very "diligent' in helping secure supplies.

Despite the uncertain geopolitics, electricity imports have continued to flow into Singapore. The Southeast Asian nation has also increased solar generation, which has catered to local needs, Leong said.

On the other hand, higher energy prices have also brought about some demand destruction. So, a balance has been maintained, Leong noted.

In 2025, gas accounted for 94% of Singapore's power generation, with LNG accounting for about 59% of the country's gas supply mix, according to an August report by S&P Global Energy CERA analysts.

"LNG demand in Singapore is expected to grow significantly from 2027 and remain elevated in the 2030s and 2040s, driven by increasing power and bunkering demand and declining pipeline gas imports," they said.

By 2029, LNG demand is forecast to reach 12.6 million metric tons/year, double the 6.3 million mt of net imports in 2025, they added.

Meanwhile, Leong said that higher global LNG prices have turned attention to supply-side market fundamentals. However, the human element also needs to be addressed to limit consumption because it is a consumer choice issue, Leong said.

SLNG operates the only LNG import facility, located on Jurong Island. SLNG plans to develop a second LNG terminal by the end of the 2020s, with a capacity of up to 5 million mt/year as Singapore aims to become a physical LNG hub.

In May, SLNG said that it had started construction of onshore connecting infrastructure for Singapore's second LNG terminal at the country's Jurong port.

Leong also highlighted that in response to Asian demand, it was not only important to build regasification capacity in the region but also to facilitate consumption by the industry and power generators, to train people, and to find ways to absorb that capacity even in times of peace.

He also reflected on the importance of collaboration to connect pipelines, writing contracts, and helping to build regional energy resilience.

Turning to green capacity, Leong said it was vital to build that capacity because the energy transition was coming.

Although Singapore had been relying mostly on LNG or gas for power, a balance among liquids, gas, renewables, and even nuclear may need to be considered, with policy settings, as well as public education and acceptance, continuing to hold the key, Leong said.

Singapore is set to embark on the first phase of the Integrated Nuclear Infrastructure Review outlined by the International Atomic Energy Agency in 2027, even as the country pursues multiple pathways to balance the goals of energy security, affordability and sustainability, Prime Minister Lawrence Wong said May 19.

Singapore is also focusing on newer reactor technologies, including small modular reactors, as well as other advanced designs with enhanced safety features, as the country explores multiple pathways for energy, Wong said at the time.

At the time, Wong also shared that "in the medium term, natural gas will continue to anchor our energy mix."

Platts, part of S&P Global Energy, assessed the October JKM at $28.505/million British thermal unit Sept. 9, up 6.1% from the previous session, with the LNG DES Southeast Asia Marker, or SEAM, 6.1% higher at $28.255/MMBtu.