EMA MONITORING GLOBAL DEVELOPMENTS
This comes amid retaliatory Iranian attacks on energy infrastructure in the Gulf since last Saturday, when the US and Israel declared war on the Islamic republic.
In Oman, drones have hit ports and fuel tanks, while in the United Arab Emirates, an oil storage zone was hit by falling debris from an intercepted drone.
Gas prices have risen since Qatar shut its LNG facilities, which supply around 20 per cent of global LNG exports, on Monday due to the war, now into its fifth day.
Iran on Wednesday also claimed it had "complete control" of the Strait of Hormuz, with an Iranian general threatening to "burn any ship" trying to pass through it. A key waterway for energy transit, it is where around 20 per cent of global seaborne oil travels.
As of 6pm on Wednesday, benchmark Brent crude was at US$83.76 a barrel, up for a third straight day.
Surging gas prices due to global demand and supply factors in 2021 caused an energy crisis that severely tested Singapore's electricity market.
Since then, EMA has established a standby LNG facility, which power generation companies (gencos) can tap to generate electricity if their natural gas supplies are disrupted.
Gencos are also required to maintain sufficient fuel for power generation based on their available generation capacity as well as a diesel stockpile as backup fuel.
In 2023, EMA introduced the temporary price cap mechanism to act as a "circuit breaker" that is activated during periods of high and sustained volatility in Singapore's wholesale electricity market.
"These measures help secure fuel and electricity supply and mitigate price volatility," said the authority.
"EMA will continue to closely monitor global developments and work with industry partners to safeguard Singapore’s energy security."
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