Force majeure notices signal a worsening LNG supply crunch for Asia, including S’pore

Force majeure notices signal a worsening LNG supply crunch for Asia, including Singapore, potentially requiring stabilisation measures. Read more at straitstimes.com.

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SINGAPORE - A string of force majeure notices issued by liquefied natural gas (LNG) suppliers is bringing closer the day when Singapore will have to take measures to stabilise supply of the fuel that powers nearly half of the country’s electricity generation.

The latest notices informing customers across Asia of unforeseeable circumstances that prevent the supplier from fulfilling its contract comes from global energy firms such as Shell - one of Singapore’s licensed importers of LNG, according to reports by Bloomberg and Reuters.

Industry sources told The Straits Times that the sudden development may take time for firms to recalibrate, such as to sort out logistical issues. This will inevitably affect LNG supply to Asia, including Singapore.

Shell’s force majeure follows QatarEnergy’s decision last week to suspend operations at its Ras Laffan LNG plant - the world’s biggest LNG export facility - after it came under attack amid the ongoing conflict in the Middle East.

Qatar’s coastline is about a couple of hundred kilometres from Iran, which is fighting against a joint US-Israel military campaign since Feb 28.