Electricity prices in Singapore are rising due to Iran's strikes on Qatar's Ras Laffan gas facility, the world's largest LNG hub. These attacks have tightened global LNG supply, pushing prices up globally. Singapore, dependent on imported natural gas for 95% of its electricity, is particularly vulnerable. Qatar is Singapore's second-largest LNG trading partner, accounting for 25% of its imports. The disruption has already raised the Uniform Singapore Energy Price from S$120/MWh to S$170/MWh. Higher gas prices will likely increase retail electricity tariffs in Singapore starting from April.
The impact could persist if the conflict continues or causes further damage to LNG infrastructure.