Doubling Down on Gas: Singapore’s Second LNG Terminal Plans and GasCo’s 2026 Buying Debut

Singapore is leaning harder into natural gas while also planning for long-term transition risks. Natural gas already makes up 95% of Singapore’s energy mix, and Singapore relies on gas to generate 95% of its electricity. In that context, the country has established a new state buyer, GasCo, in 2025 to centralise gas procurement and supply after LNG prices spiked with the Ukraine-Russia war. At the same time, Singapore’s LNG imports have increased significantly over the past five years, and a second receiving terminal is planned by 2030 to meet growing demand. Together, these moves frame the Singapore second LNG terminal GasCo 2026 story: more infrastructure, a new buyer, and a tighter focus on security and affordability.

GasCo’s leadership has put a clear marker on timing. Chief executive Alan Heng said the company is set to be “operationally ready” to start procuring LNG by 1 January 2026, and that it has already begun engaging potential LNG suppliers for long-term contracts. GasCo is aiming for a diverse supply portfolio, blending longer-term and shorter-term contracts, using different pricing indexations, and sourcing from different geographical origins. Heng also said GasCo would be ready by 1 January 2026 to step in to procure spot LNG cargoes and deliver them to local end-users if needed, noting that Singapore is well-contracted with long-term LNG supply through 2026 but disruptions can still happen.

From 2026 Readiness to 2028-2035 Supply Gaps

While the “buying debut” starts in 2026, GasCo is also planning around later contract cliffs and demand coverage. Heng said GasCo will seek offers in the first quarter of 2026 for LNG term supply for delivery from 2028 to meet an expected supply gap. Existing deals will continue to be managed by buyers, with contracts for piped gas mostly ending by 2028 and LNG contracts running from 2028 to 2032. In estimates he shared, the supply gap is set to grow to around three million tonnes in 2028 to 2029 and reach about six million tonnes in 2035, with the figures factoring in imports of piped gas and power from neighbouring countries.

In choosing future contracts, GasCo has emphasised practical contract features rather than one-size-fits-all commitments. Heng said price and supply reliability will be key in evaluating offers, alongside contractual flexibility. He described flexibility as the ability to turn down cargoes, ask for more cargoes, and potentially divert cargoes. GasCo expects US supply to be part of its portfolio; Heng also noted that most additional supplies in an anticipated glut are US LNG and said US producers can shut down gas plants by paying a small tolling fee, which should be considered when assessing overall balance. Beyond US LNG typically priced off Henry Hub, GasCo will also seek Brent-linked term supplies commonly used by Singapore’s power firms.

Recent import patterns and contingency planning underline why Singapore is building both institutional and physical resilience. Reuters cited Kpler data showing Singapore’s LNG imports reached 5.93 million tons last year, with nearly half shipped from Qatar. Reuters also reported Singapore imported three LNG cargoes from Qatar in March last year, as part of full-year imports of 2.76 million tonnes from the Gulf supplier. GasCo has said it is working closely with the Energy Market Authority to build contingency plans for large disruptions. In parallel, Singapore is considering broader decarbonisation options, including importing green energy from neighbouring countries, while its minister-in-charge of energy said solar is the most viable renewable option but land constraints may cap it at most 10% of projected electricity demand by 2050.