Singapore Weighs Nuclear Power After Iran War Exposes Gas Import Risk

3 min read
Singapore Weighs Nuclear Power After Iran War Exposes Gas Import Risk
PrimeXBT Editorial Team
Reviewed by PrimeXBT

Topics in article

Singapore is weighing nuclear power after the Iran war shut the Strait of Hormuz and exposed how dependent the city-state is on imported oil and gas. The government has not decided whether to deploy nuclear energy, but the IAEA will assess the country's readiness in 2027. Singapore is also positioning itself inside the global nuclear fusion supply chain rather than building its own reactor.

Singapore's energy mix leans heavily on imported fuel, and that dependence has turned costly. Oil and gas make up 65% of the city-state's energy supply, and almost all of it comes from abroad, leaving the country exposed when the war in Iran disrupted Middle East supply routes.

Hormuz closure hit Asian energy buyers hardest

When the United States and Israel began military action against Iran in February, roughly one-fifth of the world's oil and gas trade moved through the Strait of Hormuz. About 85% of the approximately 18 million barrels per day that passed through the strait went to Asian markets. The overnight closure of Hormuz left import-dependent countries like Singapore in a precarious position.

As the second-most densely populated country after Monaco, Singapore has little spare land for utility-scale wind or solar farms. That constraint, combined with the Hormuz shock, has pushed officials toward the most energy-dense option available: nuclear power.

Singapore looks to diversify, not commit

The government has already increased clean-energy imports from Lao PDR and Malaysia. Even so, experts have warned that Singapore "cannot import its way to energy security". Prime Minister Lawrence Wong addressed the dilemma in a May 19 speech, saying: "There is no single solution for Singapore, there is no silver bullet." He said the country's energy strategy must be more diversified and forward-looking than before.

Next year, the International Atomic Energy Agency will assess whether Singapore is ready to produce nuclear energy, a review the Ministry of Sustainability and the Environment called a key milestone in the country's nuclear capability building. The ministry has stressed, however, that Singapore has not decided whether to adopt or deploy nuclear power.

Fusion offers a supply-chain role instead of a reactor

Singapore is also eyeing nuclear fusion, though it is reluctant to build a reactor of its own, a technology still unproven in commercial applications. Minister for Trade and Industry Tan See Leng told the FusionX:APAC event that fusion is one pathway the government is studying closely as it builds capability in newer energy technologies. He said Singapore has built up expertise and a talent pipeline in precision engineering, advanced manufacturing and plasma diagnostics, and intends to position itself as a key player in global fusion supply chains.

Source: Oilprice.com

Trading involves risk.

Most traded markets

XAU / USD
+0.07% 4,142.99
CRUDE
-0.09% 91.193
BTC / USD
-0.7% 85,914.8
EUR / USD
-0.01% 1.12212
USTEC
+0.06% 31,110.73
NVDA
+2.43% 239.37
View all markets

Author

PrimeXBT
Our Editorial Team consists of leading experts with a proven record in the fields of trading, cryptocurrencies, blockchain and finance. We thoroughly research the sources of information in order to provide readers with quality content that serves edu...
Read author’s articles
Alert Triangle Risk Disclaimer
Disclaimer: Some past publications may be outdated. We recommend following our news to stay up to date with the latest information. For any questions, feel free to contact our support team via the chat below.
The content provided here is for informational purposes only. It is not intended as personal investment advice and does not constitute a solicitation or invitation to engage in any financial transactions, investments, or related activities. Past performance is not a reliable indicator of future results.
The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money.
The Company does not accept clients from the Restricted Jurisdictions as indicated in our website/ T&C. Some services or products may not be available in your jurisdiction.
The applicable legal entity and its respective products and services depend on the client’s country of residence and the entity with which the client has established a contractual relationship during registration.

Today in markets

Browse Commodities News

Register Now

Trading involves risk

Get started in minutes

Our clients love how fast and simple our sign-up is. It takes just a few minutes to get started!

Get Started Get Started
Get started in minutes

Need Help?

Risk Warning:
Trading in leveraged products carries a high level of risk and may not be suitable for all investors.