The ongoing conflict in the Middle East has raised global LNG prices, and may eventually raise power prices in Singapore should the conflict be prolonged, a spokesperson from Singapore government agency Energy Market Authority (EMA) said on 4 March, in response to an Argus query.
Singapore's gas imports comprised 43pc piped natural gas from Malaysia and Indonesia, and 57pc LNG from different parts of the world in 2025, the EMA added. The city-state imported a total of 6.04mn t of LNG in 2025, of which close to 47pc or 2.83mn t originated from Qatar, according to data from Global Trade Tracker (GTT).
But most domestic power consumers in the country will be cushioned from immediate price increases as they purchase power either through a fixed-price retail contract, or the regulated tariff from retailers and state-owned utility SP respectively, EMA said. Should the conflict in the Middle East persist over a prolonged period and fuel costs remain elevated, some consumers may see an increase in their power prices at the point of contract renewal, it added.
US president Donald Trump last said on 2 March that the US is prepared for its military campaign against Iran to last 4-5 weeks. Meanwhile, state-owned QatarEnergy (QE) declared force majeure on 4 March following a halt in production of LNG and associated products to its "affected" buyers. It is not known how long the disruption to Qatari LNG production will last.
EMA has established a standby LNG facility (SLF) since 2021, which power generation firms can draw upon if gas supplies are affected. In addition, adequate fuel reserves must be maintained by power generators based on their available generation capacity. A temporary price cap mechanism, introduced in 2023, will also act as a "circuit breaker" that is activated during periods of high and sustained volatility in domestic power. Every power generation firm is also required to maintain a diesel stockpile as backup fuel.
Meanwhile, the country's state-owned GasCo declined to comment on "commercial matters or market speculation". The firm was "operationally ready" to start procuring LNG by 1 January 2026, it previously said during the Singapore International Energy Week (SIEW) in October 2025.
The front half-month of the ANEA, the Argus assessments for spot LNG deliveries to northeast Asia, was last assessed at more than a three-year high of $24.165/mn Btu on 5 March. The front half-month ANEA was last assessed higher at $25.42/mn Btu on 3 January 2023.
