Oral reply to PQ on Impact of Saudi Arabia’s East-West Pipeline shutdown on Singapore’s energy security

Question:

Ms Joan Pereira: To ask the Minister for Energy, Trade and Industry (Energy and Industry) (a) what assessment has the Ministry made regarding the shutdown of Saudi Arabia’s East-West Pipeline on Singapore’s energy security; and (b) what mitigation measures are in place, including the utilisation of strategic petroleum reserves, to insulate local consumers and businesses from escalating fuel and energy costs.

Oral Answer (to be attributed to Minister for Energy, Trade and Industry (Energy and Industry) Dr Tan See Leng)

1.       The Government is closely monitoring developments affecting global energy markets, including the temporary shutdown of Saudi Arabia’s East-West Pipeline on 11 September. The pipeline resumed operations on 22 September, albeit at reduced capacity. We have not observed any reduction in our crude and LNG inventories despite the temporary shutdown. Our refineries and oil traders source crude oil and petroleum products from diverse sources beyond the Middle East and have continued to meet local demand.

2.       Nevertheless, the East-West Pipeline is an important route for Saudi Arabia’s crude oil exports that bypasses the Strait of Hormuz. A prolonged shutdown may reduce the availability of Saudi crude to an already tight global supply market thus leading to further price pressures. We will continue to monitor developments in the region and fuel prices closely, assess and put in place cost mitigating measures if they are required.