Long-term contracts impacted by geopolitical conflicts; East Eight Zone may be forced to accept high-priced spot purchases to meet energy consumption.

Golden Ten Data reported on March 4 that if the shutdown period of Qatar's large liquefied natural gas export plant is extended, Singaporeans may face higher electricity bills. This city-state is one of the countries most dependent on imported natural gas globally, with more than 90% of its electricity generated from liquefied natural gas. According to vessel tracking data, about half of Singapore's ultra-low temperature fuel purchases last year came from Qatar. Lu Ming Pang, an analyst at Rystad Energy, said that Singapore receives two to three cargoes from this Middle Eastern country every month, with most imports covered by long-term contracts. He pointed out that if these cargoes cannot be obtained, Singapore will have to turn to the spot market. Singapore's state-owned grid operator SP Group adjusts electricity prices quarterly to reflect changes in imported fuel costs. In the second quarter of 2022, after the Russia-Ukraine conflict reduced global natural gas supply and pushed up prices, the agency raised electricity prices by 10%.