DELIBERATE LONG-TERM ENERGY STRATEGY
For now, Singapore has not tapped its fuel reserves nor implemented fuel rationing in the ongoing crisis, said Mr Shanmugam.
Nevertheless, it is planning to increase its fuel reserves, in a move that he said “will be costly but we think it necessary”.
The country’s fuel reserves comprise a mix of natural gas and diesel, owned either by the government or by power generation companies, he said.
Power generation companies here also have pre-arranged contractual access to additional fuel, which suppliers are required to deliver within a set number of days upon activation, said Mr Shanmugam.
“We are prepared, if necessary, to direct the power generation companies to exercise their legal rights to secure the additional fuel,” he said, adding, however, that some of the additional fuel itself may be subject to supply disruption abroad.
Singapore’s energy and fuel resilience is part of a “deliberate long-term strategy”, which includes building up its capabilities as the world’s third-largest oil trading hub and sixth-largest refinery export hub over decades, said Mr Shanmugam.
