Tan See Leng on energy situation: Singapore ready to implement and come up with more measures

The Government is ready to implement more measures as the worsening conflict in the Middle East affects supplies of gas and energy across the world, Minister-in-charge of Energy and Science & Technology Tan See Leng told media during his visit to Singapore LNG Corporation (SLNG) on Friday (March 20).

Dr Tan highlighted how the conflict has resulted in serious implications in the 48 hours leading up to Friday, including the attack on Qatar's Ras Laffan facility — responsible for 17 per cent of the country's liquefied natural gas (LNG) capacity.

"Even as we look at it, there doesn't seem to be any end to the hostilities... even if the war stops tomorrow, the rebuilding of the Ras Laffan facility would take between three to five years," he said, stressing the gravity of the disruption this attack has caused.

Notwithstanding the stockpiles that Singapore has, the country is presently stable, he assured.

But as the situation evolves and supplies are further limited, Dr Tan expects electricity prices to go up, affecting our ability to function as one of the world's largest refinery complexes.

To tackle this imminent threat to Singapore's economy, the measures announced at Budget 2026 will "kick in quite shortly", he said.

"The government is ready," he firmly stated. "We will stand ready to implement and to come up with more measures, should it prove to be necessary.

"We're monitoring the situation very closely, because we want to also make sure that we have dry powder (reserves) for us to use when the situation gets worse."

Responding to queries from the media, Dr Tan emphasised that the country has stockpiles that will last months, also sharing that the Government has yet to see the need to dip into these reserves.

"We have always adopted a very multi-scenario-based approach, and in our planning, we have a wide range of different levels which will trigger different types of measures," he stated. 

"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 and scenarios."

Speaking on the recent hike in fuel prices, Dr Tan commented that this serves as a "very stark reminder" that Singapore is a open, connected economy devoid of natural resources aside from manpower.

"It is crisis like this that reminds us that at all times, energy is always existential for us... it should be ingrained in us that energy conservation, first and foremost, is key."

Residents, businesses have part to play

Residents and businesses in Singapore also have a part to play to help as the country prepares for turbulence ahead, he said.

Those using petrol-based vehicles can consider switching to electric vehicles and also adopt more energy efficient appliances at home.

Businesses can also make a similar switch and adopt energy conservation measures such as by turning air conditioning a little higher, Dr Tan suggested.

Usage of solar panels would also help, Dr Tan said, urging businesses to reach out to agencies within the Ministry of Trade and Industry to assist with finding sources of grants for energy efficiency.

"We do not know how long this (Middle East conflict) is going to take," he cautioned.

Dr Tan added: "We have to acknowledge the fact that our country is very small. No matter how much stockpile we want to put in or we aspire to have, there is a constraint in terms of our own space. We need to be realistic about it."

@asiaone Minister-in-charge of Energy and Science and Technology Dr Tan See Leng said Singapore needs to brace itself for "a very bumpy ride" ahead. But he also assured Singaporeans that the Government is working to ensure that supply chains remain intact. "We will pull through this difficult period together," he added. #sgnews #Singapore #Energy #MiddleEast #War #Iran ♬ original sound - AsiaOne

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khooyihang@asiaone.com