Singapore GasCo Starts First Long-Term LNG Tender and Studies Third Import Terminal

Singapore's state-owned gas procurement company GasCo has launched its first exercise to secure long-term liquefied natural gas supplies, a government minister said on Tuesday, October 27. The step moves the company from preparing its buying programme to formally seeking supply arrangements.

Gan Siow Huang, minister of state for energy, trade and industry, announced the exercise at the Asia Gas Markets conference. She also said Singapore is examining the feasibility of a third LNG import terminal on Pulau Tekong, an island in the country's northeast. No procurement volume, tender award, construction decision or cost for the proposed third terminal was announced.

Singapore relies on natural gas for roughly 95% of its electricity generation. Its state buyer was established in 2025 to centralise purchasing and diversify supply through long-term contracts. GasCo describes its mandate as securing reliable and competitively priced fuel for electricity producers.

The tender is separate from a previously announced plan to build five additional gas-fired power plants, which the government says would expand generating capacity by about 26% early in the next decade. The new supply exercise is intended to support fuel security as that expansion progresses.

Singapore currently imports LNG and pipeline gas from regional neighbours. Indonesia recently reduced some pipeline deliveries to Singapore, highlighting the exposure of energy systems to cross-border supply disruptions. Authorities say the city-state has sufficient supplies for its immediate needs.

The LNG exercise represents a procurement step, not evidence that supply contracts have already been signed. A third terminal remains under feasibility study, rather than an approved construction project.