Energy price hike unlikely in S'pore despite global demand

Analysts say markets around the world are better prepared with storage in 2022

- Ang Qing

The Republic is unlikely to experience a surge in energy prices despite greater demand for heating and electricity amid an unusually cold winter in the Northern Hemisphere, industry analysts said.

This comes as a rare triple-dip La Nina is forecast to induce below-freezing temperatures in China, Japan and South Korea over the next few weeks and an Arctic blast has dumped snow on Britain and Germany.

The chill has triggered fears of further gains in Asian liquefied natural gas (LNG) prices, which have been increasing since the middle of November after plunging from a peak in late August.

Singapore depends on imported gas for about 95 per cent of its electricity needs, making it vulnerable to any shifts in global supply and demand. This is made up of piped natural gas from Malaysia and Indonesia, and LNG from various countries.

Mr Chong Zhi Xin, director for gas, power and climate solutions at S&P Global Commodity Insights, said that while the winter chill is likely to push up gas demand in the Northern Hemisphere, markets around the world are better prepared with storage in 2022.

This should place less stress on the LNG value chain, he said.