Singapore faces energy risks with ‘resource nationalism’ that undermines contracts: Tan See Leng

[SINGAPORE] Singapore will have to brace for greater risk of energy supply disruptions amid “resource nationalism” that undermines contracts, said Minister for Energy, Trade and Industry (Energy and Industry) Tan See Leng on Monday (Oct 26).

Countries may prioritise their domestic needs during energy crunches, and “this trend of resource nationalism is particularly concerning, especially if it undermines established contractual agreements”, said Dr Tan in his opening keynote at the annual Singapore International Energy Week.

“Such moves will increase business risks and deter investments in the energy sector, with negative long-term implications,” he told conference participants at the Sands Expo and Convention Centre.

His comments come as Indonesia began cutting natural gas exports to Singapore on Saturday, prompting gas importer Gas Supply to look into whether there has been a breach of contract.

Acknowledging the Indonesian curbs, Dr Tan noted that the reduction amounts to under 2 per cent of Singapore’s total daily gas demand.

He highlighted that the Republic has dealt with similar past disruptions “without incident, because of all the measures we have invested in and built up over many years”.

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