Image

Singapore deals with Hormuz crisis via Aussie LNG, grid management

Singapore generates more than 90% of its electricity via imported natural gas. It has managed to replace blockaded (and once-dominant) Qatari supply with Australian LNG.

It’s notable that Singapore’s consumers and businesses aren’t cutting back their power use. This is a sign that the broader economy is holding up, but also reflects deliberate policy design.

A support package announced in April was aimed at smoothing the shock (rather than rationing consumption) so higher energy prices didn’t immediately choke off business activity or household spending.