Opening Remarks by Minister of State for Energy, Trade and Industry Gan Siow Huang at the Asia Gas Markets Conference

Distinguished Guests,

Ladies and Gentlemen,

Energy trilemma in a fragmented world

1. Good morning, good to be back at this forum. The Asia Gas Markets Conference brings the key leaders in the gas markets together, and we're delighted to have it alongside Singapore International Energy Week, both of which are complementary. Well, natural gas powers 95 per cent of Singapore's electricity. So certainly, we are very deeply interested in what is happening in the gas markets.

2. We meet at a time when energy issues are at the top of mind of the global agenda. You are at the heart of this. The Middle East conflict has reminded us how vulnerable and volatile global energy supply chains can be. This is not the first time that we are seeing disruptions to energy supplies, but there are indications that there could be more to come. Hence, very timely for us to meet here today.

3. As we navigate the energy trilemma in a divided and dangerous world, how can governments and the gas industry work together to secure our energy future? I’d like to offer three thoughts.

Strengthening Energy Resilience

4. First, governments should partner with industry to strengthen energy resilience. Partnership between the government and the industry.

5. Recent disruptions have demonstrated that securing sufficient LNG volumes is only part of the equation. We must also consider whether cargoes can be delivered reliably, particularly when shipping routes are disrupted or supplies become constrained.

6. Governments must assess their energy security needs and establish appropriate arrangements to safeguard supply. Industry partners, from LNG producers and traders to shipping companies and terminal operators, play a critical role in translating these arrangements into reliable deliveries.

7. We need to draw on the industry's expertise in identifying practical solutions to mitigate uncertainties in LNG supplies. Last month, the International Energy Agency reported that LNG portfolio players are taking on more long-term upstream LNG contracts while offering buyers greater source and volume flexibilities. Governments and industry can work together to make use of such commercial arrangements to strengthen LNG supply resilience.

8. Singapore looks forward to working with industry to enhance energy resilience. Last year, we set up GasCo to centralise gas procurement and diversify our supply portfolio. To strengthen Singapore’s long-term energy security, GasCo has launched its first Open Season, an LNG procurement exercise to secure term supplies.

Capturing Economic Growth and Opportunities

9. Second, governments must work with industry to ensure that there is sufficient gas to power Asia's growing energy needs.

10. Global electricity demand is expected to grow by more than a quarter over the next decade, with Asia accounting for a significant share. Electrification, rising incomes, demand for cooling, data centres and AI will power this growth.

11. Asia is preparing for this demand increase. From 2025 to 2030, ASEAN is expected to add around 24 gigawatts of gas-fired generation capacity. The region is also building an additional 34 MTPA of LNG regasification capacity.

12. Singapore is no exception. As Minister Tan See Leng said yesterday, Singapore will embark on a significant expansion of energy infrastructure as our economy grows and we attract more electricity-intensive activites. Five new gas-fired power plants will come online by 2031. Our second LNG terminal will increase our LNG regasification capacity to 15 MTPA. Furthermore, we are studying the need and feasibility of a third LNG terminal in Pulau Tekong.

13. Realising these investments requires both public-sector planning and private-sector participation. Governments can plan ahead for future infrastructure needs but we need the industry to bring its technology and expertise to develop and operate these facilities.

14. By working together, we can ensure that energy infrastructure keeps pace with economic growth, while creating new opportunities for businesses across the LNG value chain.

Pursuing a Low-Carbon Future

15. Third, we must keep sight of our decarbonisation goals and continue making progress towards them.

16. Natural gas will remain an important transition fuel as we develop lower-carbon energy alternatives. At the same time, we should explore how today's gas infrastructure and supply chains can support the transition to tomorrow's lower-carbon energy system.

17. ASEAN has significant potential to develop biomethane, a renewable alternative to natural gas that can leverage existing gas infrastructure and supply chains. The region’s extensive agricultural and palm oil industries generate substantial organic waste, much of which could be converted into biomethane. Several biomethane projects have already been announced in Malaysia, Indonesia, and Thailand. In Singapore, we recently appointed Keppel Energy, Sembcorp Utilities and Tuas Power as aggregators under our 300MW Biomethane Sandbox, to test the commercial viability of importing and using biomethane for power generation and industrial decarbonisation in Singapore.

18. Beyond testing commercial viability, the Sandbox will help us better understand the supply chains, certification requirements and market arrangements needed to support potential wider biomethane adoption in the future. This could open up new opportunities for the gas industry to develop regional biomethane supply chains, leverage existing gas infrastructure and trading capabilities.

19. Government can help establish enabling frameworks, but industry participation will be critical to developing commercially viable supply chains and securing customer demand. We look forward to working closely with industry to realise these opportunities, while keeping the energy transition practical and affordable.

Singapore stands ready to partner industry

20. Asia's energy future will require us to address three priorities together: securing reliable supplies for resilience, meeting growing demand and reducing emissions.

21. Each of these priorities requires different solutions, but all will depend on strong partnerships between the government and the industry.

22. Singapore looks forward to working with the gas industry to build a secure, competitive and sustainable energy future.

23. I wish everyone a productive and fruitful conference. Thank you.