Spot LNG prices soar 113% between January to August: MTI
About one-third of Singapore’s natural gas is imported as LNG.
Between January to August, spot prices of Liquefied Natural Gas (LNG) have risen 113%, Trade Minister Gan Kim Yong revealed.
From August 2021 to August 2022, spot LNG has risen 224%.
In a response to a Parliamentary question, Gan said 95% of Singapore’s electricity is generated using natural gas, and one-third of the Lion City’s natural gas is imported as LNG.
“Electricity generation companies also use spot LNG to supplement their long-term contracts,” added.
Prices of LNG provided through term contracts have risen by 38% between January and August.
“As Singapore imports, most of our energy supply for electricity production, the increase in global energy prices over the past year will flow through into our prices,” Gan said.
“I know that many Singaporeans are also concerned about whether something similar might happen to us. Our approach has always been to right-price electricity and provides targeted assistance, such as GST Voucher - U-Save rebates to consumers, especially to the vulnerable and low-income ones. EMA is also prepared to introduce more emergency measures to forestall extreme volatility in electricity prices if necessary,” he added.