Singapore Launches First Long-Term LNG Supply Tender as It Considers a Third Import Terminal

Published 2026-10-27

Singapore's state gas buyer, GasCo, has started its first procurement exercise to secure long-term supplies of liquefied natural gas (LNG). LNG is natural gas that has been cooled into liquid form so it can be shipped across oceans. Because Singapore does not produce much natural gas itself, the country relies on imports to fuel its power plants and industries.

The tender is an important step in the country's energy plans. Long-term contracts can give Singapore more stable and predictable supplies than buying gas on the short-term market, where prices can change quickly. By signing agreements over several years, GasCo hopes to protect the country against sudden shortages or price rises in global energy markets.

The government is also considering building a third LNG import terminal. Singapore already has two terminals, one on Jurong Island and another at Singapore LNG's Jurong Island facility. A third terminal would give the country more capacity to receive gas shipments and store them. Officials have not yet announced a final decision on the project, and they will study costs, land use and future demand before deciding.

For people in Singapore, the plans are closely linked to energy security and the cost of electricity. Natural gas provides most of the country's electricity, so changes in gas supply can affect household power bills over time. The outcome of the tender and the terminal decision will show how the country plans to balance reliability, cost and its long-term climate goals.

Sources: The Edge Malaysia

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