SINGAPORE — Singapore's state gas buyer, GasCo, has secured extra cargoes of liquefied natural gas (LNG) to mitigate supply shortfalls caused by the US-Israel conflict with Iran. The company plans to pursue long-term supply agreements this year, despite the ongoing market instability.

The city-state, which relies on gas for 95 percent of its electricity generation, has been increasing its LNG imports, which reached 5.93 million tonnes last year, with nearly half sourced from Qatar, according to Kpler data.

"Although some of our LNG imports have been reduced, Singapore GasCo has proactively secured additional cargoes to enhance existing supply sources," said Chief Executive Alan Heng in an email response to Reuters.

"In the short term, our priority is to secure LNG cargoes to compensate for the supply cuts from current suppliers."

Two Spot Cargoes from Australia and One from Mozambique

Kpler ship tracking data indicates that Singapore has received two spot cargoes from Australia and one from Mozambique since the conflict began on February 28.

One of the Australian cargoes was delivered on March 27 from the APLNG project, and the second on April 9 from the Gorgon LNG project.

The third cargo arrived on April 19, loaded from the Coral South floating LNG project off the coast of Mozambique.

Last March, Singapore imported three LNG cargoes from Qatar, contributing to a total of 2.76 million tonnes for the year from the Gulf supplier.

GasCo declined to comment on specific commercial arrangements in response to a request from Reuters regarding the spot cargo procurements and deliveries to Singapore.

Plans for Long-Term Supplies in 2026

Regarding its long-term LNG procurement strategy, GasCo intends to enter the market in 2026 to seek long-term supplies, Heng confirmed.

"Currently, the market is disrupted and remains highly volatile," he added.

"We are in ongoing discussions with credible and trusted suppliers."

In November, Heng mentioned that GasCo would seek offers in the first quarter of this year for term LNG deliveries starting in 2028.

Since the onset of the war, Iran's blockade of the Strait of Hormuz, which handles 20 percent of global LNG flows, along with damage to Qatar's liquefaction facilities, has driven Asian LNG prices to three-year highs, although some gains have since been reduced.

The prices have risen by 54 percent since late February, reaching US$16.05 (S$20.42) per million British thermal units (mmBtu).

Analysts Adjust Global Supply Forecasts

Analysts have revised global supply forecasts downward, predicting that high prices and supply shortages will lead to reduced demand across Asia.

"The situation remains fluid, and we anticipate ongoing uncertainty and volatility in the market," said Heng.

The company aims to collaborate closely with regulators, gas suppliers, and power generation companies to ensure the reliability of Singapore's energy supply, he added.

"We are actively managing and monitoring supply reductions to Singapore and procuring additional LNG supplies as needed."