Singapore, October 27 (ANI): Singapore’s Minister for Energy, Trade and Industry Tan See Leng has warned that the continuing closure of the Strait of Hormuz is disrupting global energy flows, stressing that energy-importing countries must strengthen their resilience against future supply shocks.
During the 'Singapore Energy Lecture' at the Singapore International Energy Week (SIEW) 2026 on Monday, Tan said, "The crisis in the Strait of Hormuz will not be the last of its kind. Singapore will not be able to insulate itself from global or regional shocks."
"The global energy landscape has become significantly more challenging this year. The closure of the Strait of Hormuz continues to disrupt global energy flows, and the situation may escalate further following the recent Houthi attacks on Saudi Arabia’s airport and energy infrastructure," he said.
Tan cautioned that countries could prioritise their domestic requirements during supply shortages, raising concerns over resource nationalism.
"When there is a supply crunch, countries may also prioritise their own domestic needs. This trend of resource nationalism is very concerning, especially if it undermines established contractual agreements," he said.
He added that such moves could increase business risks and deter investments in the energy sector, with negative long-term implications. Energy importers such as Singapore would have to account for the increased risks of supply disruptions, he said.
To mitigate these risks, Singapore has diversified its gas supplies, with about half of its gas imports now coming in the form of liquefied natural gas (LNG) from sources including the United States and Australia. The country also plans to expand its LNG throughput capacity by 50 per cent when its second LNG terminal becomes operational by 2030.
Tan said Singapore had established multiple lines of defence to ensure adequate energy supplies across different scenarios, including fuel reserves comprising gas and diesel. Earlier this year, Singapore GasCo also secured replacement gas when shipments from Qatar were disrupted.
Highlighting the importance of international partnerships, Tan said Singapore had renewed a memorandum of understanding with QatarEnergy on cooperation in LNG and low-carbon technology and signed an agreement with the Abu Dhabi National Oil Company to establish a joint energy task force.
Singapore and Saudi Arabia have also announced their joint intent to establish an arrangement for Saudi crude oil to be stored at the Jurong Rock Caverns from the second half of 2027. The arrangement is expected to strengthen Saudi Arabia’s crude oil supply chain in Southeast Asia while contributing to Singapore’s energy security during supply disruptions.
Despite the continuing crisis, Tan said Singapore had managed to limit its impact.
"Our preparations have allowed us to mitigate the worst of this crisis. While prices have risen this year, there have been no fuel shortages or power outages," he said.
He also acknowledged a recent reduction in piped gas exports from Indonesia to Singapore, but said it accounted for less than two per cent of the country’s total daily gas demand.
"We cannot predict every disruption, but we will ensure that Singapore is prepared for them," Tan said, adding that the country would continue to expand its energy options, strengthen international partnerships and build greater resilience.
"Our households and businesses can be assured that our energy security is always at the top of our minds," he said. (ANI)
"Crisis in Strait of Hormuz will not be last of its kind": Singapore Energy Minister Tan warns of energy supply risks
