Singapore has almost no domestic fossil fuel resources, little open land and no large rivers for hydropower. Yet it has developed one of Asia’s most important energy systems. The country is a major centre for oil refining, petrochemicals, liquefied natural gas, shipping and energy trading, even though nearly all of its fuel comes from abroad.
This contrast defines energy in Singapore. The country is not rich in natural resources, but it is rich in infrastructure, finance, technical knowledge and access to global markets. Natural gas powers most of the electricity grid. Oil remains central to industry and trade. Solar power is expanding wherever space can be found. Regional electricity imports, hydrogen and possibly nuclear energy could shape the next stage of the system.
Singapore Is Energy-Poor but Infrastructure-Rich
Singapore’s physical geography creates the basic problem behind its energy policy. It is a small, densely populated island state near the equator. Land must be shared between housing, industry, transport, military needs, water storage, nature and energy infrastructure. There is little room for large wind or solar farms, while the country does not have the strong river systems needed for large-scale hydropower.
Singapore also has no important domestic oil, natural gas or coal reserves. Almost every major fuel used in the country must therefore arrive through pipelines, ports, tankers or electricity connections. Energy security depends less on controlling resources underground and more on maintaining reliable supply chains.
The country has answered this challenge by building a highly connected system. Jurong Island contains power plants, refineries, chemical facilities, storage terminals and the national LNG terminal. Pipelines link Singapore with Malaysia and Indonesia. Its port connects the country to global oil and gas markets, while new subsea cables and regional power agreements are expected to link it more closely to Southeast Asia’s electricity resources.
This model has made Singapore an energy hub without making it energy independent. The country can buy fuel from many suppliers, process it, trade it and store it, but it remains exposed to global prices and disruptions.
Natural Gas Is the Backbone of Singapore’s Electricity Grid
Natural gas dominates electricity generation in Singapore. It accounted for 94 percent of the power-generation fuel mix in 2024 and 93.1 percent during the first half of 2025. Solar, waste-derived energy, electricity imports, petroleum products and coal made up the much smaller remaining share.[1]
The growth of gas was a deliberate policy choice. Singapore once used more fuel oil in its power stations, but modern combined-cycle gas turbine plants are more efficient and produce less carbon dioxide and local air pollution than oil- or coal-fired generation. Gas plants can also adjust their output as electricity demand changes, an important feature as more solar power enters the system.
Gas supply originally came mainly through pipelines from Indonesia and Malaysia. Singapore added another source in 2013 when its liquefied natural gas terminal began commercial operations on Jurong Island. The terminal allows LNG to arrive by ship from producers around the world rather than tying Singapore to a small number of regional pipelines.
The LNG terminal now has four storage tanks and an annualised average gas supply capacity of about nine million tonnes, with higher capacity available during peak operations. It can receive vessels ranging from small LNG carriers to the largest Q-Max ships.[2]
This infrastructure gives Singapore flexibility, but it does not remove price risk. Electricity prices remain closely linked to international gas markets. When LNG prices rise because of conflict, extreme weather or supply shortages elsewhere, Singapore feels the effect. The country must therefore balance long-term contracts, pipeline supplies, LNG purchases and fuel reserves.
Natural gas will remain important even as Singapore adds lower-carbon electricity. It is likely to provide backup generation when solar output falls or imported electricity is interrupted. The policy question is not whether gas will disappear quickly, but how long it will remain dominant and whether future plants can use hydrogen, ammonia or other lower-carbon fuels.
Oil Matters Even Without Singaporean Oil Fields
Singapore produces no meaningful quantity of crude oil, but oil has played a central role in its economic development. Its location beside the Strait of Malacca, one of the world’s busiest shipping routes, helped it grow into a major centre for refining, storage, bunkering, petrochemicals and commodity trading.
Jurong Island is the physical centre of this industry. The man-made industrial island covers about 3,000 hectares and brings refineries, chemical plants, utilities, pipelines, storage facilities and logistics services together in one specialised cluster. More than 100 energy and chemical companies operate there, supported by common infrastructure and access to Singapore’s port.[3]
The scale of Singapore’s oil trade is much larger than domestic fuel consumption alone would suggest. In 2024, the country imported 149 million tonnes of oil equivalent in energy products. Petroleum products formed 59 percent of those imports. Singapore exported 78 million tonnes of oil equivalent in energy products during the same year, almost all of it in petroleum products.[4]
This reflects Singapore’s role as a processing and trading centre. Crude oil and fuel products enter the country, are refined, blended, stored or converted into chemicals, and then move back into regional and global markets.
Oil also remains important at home. Road vehicles, aviation, shipping, construction equipment and parts of industry continue to use petroleum fuels. Changi Airport creates strong demand for aviation fuel, while Singapore’s port supports a large marine-fuel market.
The challenge is that oil and petrochemicals bring both economic value and high emissions. Singapore cannot treat the industry as a minor part of the economy, but it also cannot meet its climate targets without changing how the sector operates. Jurong Island is therefore being positioned as a site for lower-carbon fuels, sustainable aviation fuel, advanced recycling, carbon capture, hydrogen, ammonia and more efficient industrial processes.
Coal Has Almost No Strategic Role in Singapore
Coal is not a meaningful foundation of Singapore’s energy system. The country has no coal mines and has not built its electricity sector around large coal-fired power stations. Coal and petroleum products together accounted for only 1.2 percent of the electricity-generation fuel mix in 2024.[5]
The limited use of coal is partly a result of geography. Singapore lacks domestic coal reserves, and importing large quantities would require additional port, storage and pollution-control infrastructure. Coal plants also need significant amounts of land, which is difficult to justify in a dense city-state.
Natural gas has offered a more practical choice. Gas-fired plants require less space, start more quickly and produce fewer local pollutants. Singapore’s electricity system was therefore able to move away from heavier oil products without passing through the long period of coal dependence seen in many other Asian economies.
Coal can still appear in industrial energy statistics or in small quantities linked to specialised operations. However, it is not central to Singapore’s electricity security, employment or regional development. This makes Singapore’s energy transition different from those of Indonesia, India, China or South Africa, where coal mines, power stations and industrial jobs create a much larger political challenge.
A Compact Grid Supports an Electricity-Intensive Economy
Singapore generated about 60 terawatt-hours of gross electricity in 2024. Its registered generation capacity reached more than 13,000 megawatts during the first half of 2025 after new generation units entered service and solar capacity continued to grow.[6]
Most large power stations are located near industrial areas and gas infrastructure. Combined-cycle gas turbines, cogeneration plants and trigeneration facilities form the centre of the system. Cogeneration is especially useful on Jurong Island because industrial facilities may need both electricity and steam.
Singapore operates a competitive wholesale electricity market. Generators sell electricity through the National Electricity Market of Singapore, while retailers supply households and businesses under different contract structures. SP PowerAssets owns the national transmission system, and SP PowerGrid builds and maintains the network.[7]
The island’s small size can support a compact and closely managed grid, but it also creates risk. Singapore cannot rely on large domestic regions to send emergency power when a local plant or fuel source fails. Until regional electricity imports become much larger, most backup capacity must exist within the country.
Electricity demand is expected to continue rising. Data centres, semiconductor production, advanced manufacturing, air conditioning, electric vehicles and the electrification of industrial processes all add pressure. The Energy Market Authority has projected electricity demand growth of around two to five percent per year over the coming decade.[8]
Data centres are especially important. Singapore is a regional digital hub, but data centres require continuous electricity and cooling. Their growth creates tension between economic development, land use, power capacity and emissions. Future facilities will face increasing pressure to improve energy efficiency and use low-carbon electricity.
Solar Power Must Fit Around the City
Solar energy is Singapore’s strongest domestic renewable resource. The country receives regular sunlight throughout the year, but land scarcity limits how much utility-scale solar can be built. Singapore’s solar strategy is therefore based on using surfaces that already serve another purpose.
Solar panels can be found on apartment blocks, industrial buildings, schools, military facilities, warehouses and transport infrastructure. Panels have also been placed on reservoirs and other water surfaces. The Tengeh Reservoir floating solar farm is a clear example of how Singapore combines water infrastructure with electricity generation.
The country reached two gigawatt-peak of installed solar capacity in 2025, meeting its earlier 2030 target ahead of schedule. Singapore has now raised its goal to three gigawatt-peak by 2030. More than 80 percent of existing capacity is estimated to be installed on rooftops.[9]
This is a significant achievement for a dense city, but solar will still provide only part of Singapore’s electricity. Solar output changes with cloud cover, weather and the time of day. Electricity demand remains high after the sun sets, particularly because of evening cooling needs.
Energy storage can help manage this difference. The Sembcorp energy storage system on Jurong Island has 285 megawatt-hours of capacity and was one of the largest systems of its kind in Southeast Asia when it opened. Batteries can respond quickly to changes in solar generation, support grid stability and reduce the need to keep some gas units running only as backup.[10]
Singapore may also use batteries inside data centres, commercial buildings and industrial facilities. These distributed systems could provide emergency power while also helping the national grid during periods of high demand.
Waste-to-Energy Connects Electricity With Land Scarcity
Waste-to-energy has a special role in Singapore because the country must manage both energy and waste within severe land limits. Burning waste reduces its volume while producing steam that drives electricity generators.
Singapore currently has four operating waste-to-energy plants. They include TuasOne, the Keppel Seghers Tuas plant, the Tuas South Incineration Plant and the Senoko plant. TuasOne alone can process about 3,600 tonnes of waste per day and generate up to 120 megawatts of electricity.[11]
Waste-to-energy is not equal to wind or solar in environmental terms because incineration still produces carbon emissions. However, it solves a different national problem. Without incineration, Singapore would need far more landfill space, which it does not have.
Ash and non-incinerable waste are transported to Semakau Landfill, an offshore facility. The country is also developing the Tuas Nexus complex, which combines solid-waste and used-water treatment. The aim is to recover energy and materials more efficiently by linking systems that were previously separate.
This approach reflects Singapore’s wider infrastructure culture. Energy projects are often designed to serve several purposes at once because land, water and industrial space are too valuable for isolated solutions.
Regional Electricity Imports Could Reshape the System
Domestic solar alone cannot remove Singapore’s dependence on natural gas. The country is therefore looking beyond its borders for low-carbon electricity.
Singapore began importing hydropower from Laos in 2022 through Thailand and Malaysia under the Lao PDR–Thailand–Malaysia–Singapore Power Integration Project. The first stage allowed imports of up to 100 megawatts. The second phase increased potential trading capacity to 200 megawatts and introduced additional supply from Malaysia.[12]
The project is small compared with Singapore’s total electricity demand, but its strategic value is much larger. It shows that electricity can move across several national systems under commercial and technical agreements. It also supports the long-term idea of an ASEAN Power Grid.
Singapore now aims to import around six gigawatts of low-carbon electricity by 2035. That could meet roughly one-third of expected electricity demand at that time. Proposed projects include power from Indonesia, Cambodia and Vietnam, with subsea cables likely to play a major role.[13]
Electricity imports would allow Singapore to access renewable resources that it cannot build at home. Indonesia has more land for solar projects, while mainland Southeast Asia has access to hydropower, wind and larger power networks.
Imports also create new risks. A cable can fail, a supplying country can change its policy, and regional demand can reduce the amount of power available for export. Singapore will therefore need several suppliers, strong contracts and enough domestic generation to manage interruptions.
Nuclear Energy Has Returned to the Policy Debate
Singapore does not operate a nuclear power plant and has not decided to build one. A 2012 study concluded that the nuclear technologies available at the time were not suitable for deployment in the country.
The issue has not disappeared. Singapore is building technical knowledge in nuclear safety, security, waste management and technology assessment. Government officials have also shown particular interest in advanced nuclear technologies and small modular reactors.[14]
Traditional large reactors would be difficult to fit into Singapore. The country’s dense population, limited land and lack of remote areas would make site selection, emergency planning and waste storage unusually complex. Any serious proposal would also need to address public confidence and cooperation with neighbouring countries.
Small modular reactors may offer different options if future designs become safer, smaller and more commercially proven. They could provide stable low-carbon power without requiring the same land area as a traditional nuclear station. However, many SMR technologies remain under development, and cost, licensing and waste questions are not settled.
For now, nuclear energy is a long-term possibility rather than an active construction programme. Singapore’s approach is to build enough expertise to make an informed decision if the technology becomes suitable.
Hydrogen and Ammonia Offer a Possible Route Beyond Gas
Singapore’s National Hydrogen Strategy treats hydrogen as a possible future fuel for power generation, shipping and industry. Depending on technology and market development, hydrogen could eventually supply a large share of the country’s energy needs.[15]
Hydrogen could be burned in modified gas turbines or used in fuel cells. Ammonia, which is easier to transport than pure hydrogen, could act as a hydrogen carrier or as a fuel in its own right. These options are attractive because Singapore already has gas turbines, ports, storage facilities and fuel-trading companies.
The problem is cost and supply. Low-carbon hydrogen requires large amounts of clean electricity, which Singapore cannot easily produce domestically. Most hydrogen or ammonia would probably need to be imported from countries with cheaper renewable power.
Singapore is therefore developing trials, standards and partnerships rather than assuming one technology will succeed. Jurong Island and the port provide natural testing grounds for ammonia handling, hydrogen-ready turbines, sustainable marine fuel and carbon-management systems.
Carbon Pricing Adds Pressure to an Industrial Economy
Singapore introduced Southeast Asia’s first broad carbon tax in 2019. The rate increased to S$25 per tonne of carbon dioxide equivalent in 2024 and 2025, and then to S$45 in 2026 and 2027. The government intends to move toward a rate of S$50 to S$80 per tonne by 2030.[16]
The tax applies to large industrial facilities that produce at least 25,000 tonnes of direct greenhouse gas emissions per year. This includes major power stations, refineries and chemical plants.
Carbon pricing is important because Singapore’s economy includes sectors that are difficult to decarbonise. Refining, petrochemicals, shipping, aviation and advanced manufacturing cannot all move directly to rooftop solar. Companies need incentives to improve efficiency, change fuels, capture emissions or redesign production.
Singapore has committed to reach net-zero emissions by 2050 and to reduce annual emissions to between 45 million and 50 million tonnes of carbon dioxide equivalent by 2035.[17] Reaching those goals will depend heavily on the power and industrial sectors.
Singapore’s Energy Future Depends on Connections
Singapore’s energy transition will not follow the standard path of replacing coal plants with domestic wind and solar farms. Coal is already marginal, while the country does not have enough land to meet all of its demand with local renewables.
Its future system is more likely to combine several connected sources. Solar panels will cover more rooftops, reservoirs and industrial sites. Batteries will help manage daily changes in generation. Natural gas plants will provide reliability, with some facilities designed to use hydrogen or ammonia later. Regional cables will bring renewable electricity from countries with more land and natural resources. Nuclear energy may remain an option if advanced reactor technology becomes suitable.
Oil refining and petrochemicals will also continue to matter, but Jurong Island will face growing pressure to produce cleaner fuels and reduce emissions. Singapore’s role as an energy hub may survive the transition, even if the products being stored, traded and processed begin to change.
The central question is not whether Singapore can become fully energy independent. Its geography makes that unlikely. The more practical goal is to build a system in which no single pipeline, fuel, supplier or technology can place the country at unacceptable risk. Singapore built its energy strength through trade and infrastructure. Its lower-carbon future will depend on using those same advantages in a more complex regional system.
