\n<\/p>\n
SINGAPORE: Electricity prices in Singapore are rising as global energy markets react to attacks on Qatar’s Ras Laffan gas facility.<\/p>\n
The complex is the world’s largest liquefied natural gas (LNG) export hub, accounting for roughly a fifth of global supply. News of Iran’s strikes on Wednesday sent European gas prices surging by as much as 35 per cent, while oil prices also spiked on fears of wider disruption to energy flows.<\/p>\n
The impact is not limited to Europe. LNG is traded globally, and supply disruptions can quickly ripple across regions, including Asia, as buyers compete for limited cargoes.<\/p>\n
This matters for Singapore, where 95 per cent of its electricity is generated using imported natural gas, comprising LNG and pipeline gas from neighbouring countries.<\/p>\n
So how exactly is the disruption feeding through to electricity prices here, and what happens next?<\/p>\n
Qatar is one of the world’s top LNG producers, alongside the United States, Australia and Russia.<\/p>\n
Ras Laffan sits at the centre of Qatar\u2019s LNG exports, meaning any disruption there can quickly tighten global supply.<\/span><\/p>\n The CEO of state-run QatarEnergy said on Thursday that the latest attacks would <\/span>slash Qatar’s LNG export capacity by 17 per cent<\/span> for up to five years, costing an estimated loss of US$20 billion in annual revenue.\u00a0\u00a0\u00a0<\/span><\/p>\n “This means that we will be compelled to declare force majeure for up to five years on some long-term LNG contracts,” the minister added, using the legal term for events beyond a supplier’s control that prevent it from fulfilling contracts.<\/span><\/p>\n Iran’s attack on Qatar\u2019s Ras Laffan facility has pushed up gas prices in both Europe and Asia, even for countries that do not import LNG directly from Qatar, said Mr Tom Marzec-Manser, director of Europe Gas & LNG at energy consultancy Wood Mackenzie.<\/span><\/p>\n