S’pore ready to step in to help businesses, households if Middle East conflict worsens: Tan See Leng

Singapore has not yet needed to dip into its energy stockpiles, which are enough to last for months. Read more at straitstimes.com.

SINGAPORE -Singapore stands ready to implement contingency measures in relation to the energy market as the conflict in the Middle East has now turned “significantly more serious”, said Minister-in-charge of Energy and Science and Technology Tan See Leng on March 20.

While the Government has not yet needed to dip into its energy stockpiles of liquefied natural gas (LNG) and diesel – which are enough to last for months – Dr Tan noted that the recent US strike on Iran’s main oil export hub and Tehran’s retaliatory attack on Qatar’s Ras Laffan facility will bring about longer-term effects.

The Ras Laffan facility, which typically produces around a fifth of the world’s supply of LNG, has suffered significant damage and will take years to be rebuilt.

“These (events) have very serious implications for all of us. Even as we look at it, there doesn’t seem to be any end to the hostilities, notwithstanding the fact that President (Donald) Trump said it was going to be a short war,” he said during a visit to the SLNG Terminal on Jurong Island.

“Even if tomorrow the war stops, the rebuilding of Ras Laffan would take between three and five years. So you can expect that kind of disruption,” he added, as an LNG tanker which arrived from Australia unloaded its cargo of fuel in the background.

Hostilities in the Middle East have also effectively closed the Strait of Hormuz waterway that connects the Persian Gulf to the Indian Ocean and handles a fifth of the world’s oil and 19 per cent of LNG supplies.