Prime Highlights:

• GasCo will invite offers for long-term LNG supply in early 2026 to address an anticipated gas shortfall starting 2028.
• The company aims to focus on price, supply reliability, and flexible contract terms while nearly doubling its workforce.

Key Facts:

• Singapore’s gas demand may face a shortfall of around 3 million tonnes by 2028–2029, potentially rising to 6 million tonnes by 2035.
• Current LNG and piped gas contracts cover demand only for the next two years, prompting GasCo to diversify suppliers, including US LNG and Brent-linked contracts.

Background:

Singapore’s new state gas buyer, GasCo, plans to invite bids in early 2026 for long-term LNG supplies to ensure the country’s energy stability. CEO Alan Heng said the move is to tackle a projected gas shortage, with deliveries starting in 2028. GasCo was formed in 2025 to streamline Singapore’s gas procurement, following volatility in LNG prices triggered by the Russia-Ukraine conflict.

Heng said current contracts will cover demand for the next two years. After that, Singapore could face a shortfall of about three million tonnes in 2028–2029, rising to six million tonnes by 2035, including piped gas and imports.

GasCo will look at new offers based on price, reliability, and contract terms. The company also plans to nearly double its staff from 25 next year as it grows.

In addition to US LNG, GasCo is seeking long-term Brent-linked supplies, standard in Singapore’s power sector. Heng said gas imports from Malaysia and Indonesia may fall as these countries use more for their own needs. Since 95% of Singapore’s electricity comes from gas, securing a stable supply is crucial.

Analysts expect new LNG supplies later this decade to benefit buyers and strengthen Singapore’s energy security.

Read Also : Singapore Exchange Joins Nasdaq to Simplify Global Listings for Big Companies