Singapore’s energy diversification key to supply security and resilience amid global supply shocks, expert says

SINGAPORE, June 15 — Singapore’s energy security and fuel supply resilience were built on continued diversification efforts to address the global supply shocks amid ongoing geopolitical conflicts, according to an expert.

National University of Singapore Institute of Policy Studies (IPS) senior research fellow, Faizal Yahya believed that Singapore has intensified efforts to enhance its energy resilience through a diversified energy strategy.

He said Singapore remains highly vulnerable to external shocks due to its near-total reliance on energy and fuel imports.

He noted that Singapore’s approach of supplementing piped natural gas with globally sourced liquefied natural gas (LNG) has helped reduce supply risks by preventing over-reliance on a single supplier.

“However, as the city-state still imports almost all its energy, it remains fundamentally exposed to global market volatility,” he told Bernama recently.

Explaining further, Faizal said a key component of Singapore’s energy strategy includes the Singapore LNG (SLNG) Terminal, which has been operational since 2013, enabling it to source LNG from international markets.

To further enhance supply security, Singapore is developing a floating storage and regasification unit (FSRU), which is expected to increase the country’s LNG import capacity by 50 per cent upon completion, he added.

According to Faizal, Singapore has also played its role in using a regional approach to push for the Asean Power Grid, allowing access to cleaner energy sources beyond its borders.

“The APG would enhance the resilience of the Asean region and create greater confidence for investment flows into the region,” he added.

Meanwhile, Faizal cautioned that the global energy markets are likely to remain highly volatile in the near term due to ongoing geopolitical instability, constrained supply chains, and surging electricity demand.

Currently, the global energy landscape is defined by a delicate balance between energy security, soaring power demand and geopolitical fragmentation.

Prolonged tensions affecting key maritime routes such as the Strait of Hormuz, continue to heavily disrupt oil and LNG flows, he said.

On the home front, Faizal said Singapore’s outlook for energy security and fuel supply resilience over the next five years will continue to rely on diversification to mitigate vulnerabilities to imported fossil fuels

He reckoned that the republic needs to transition to a multi-tiered portfolio combining natural gas optimisation, regional power grids, expanded domestic solar deployment and early exploration of alternative energies.

“While land constraints limit domestic renewable deployment, the country remains on track to hit its target of 2 gigawatt-peak (GWp) of solar energy by 2030.

“To offset the intermittent nature of solar and imported renewables, Singapore is deploying utility-scale Battery Energy Storage Systems (BESS) and upgrading its power grid management infrastructure,” he said. — Bernama