Singapore imports all of its Natural Gas, which is mainly used for power generation and petrochemical production. In 2004 Singapore consumed 233 billion cubic feet (Bcf) of natural gas, a greater than five-fold increase from the 2002 level of 41 Bcf.

Natural gas use is rising rapidly, as the government promotes policies aimed at reducing Carbon dioxide and sulfur emissions, ensuring energy security, and promoting the country as a regional hub for an integrated gas Pipeline network. In 2002, the government set a target of 60 percent of the countrys electricity to be generated from natural gas by 2012. By 2003, this goal had already been met, and the Singapores Energy Market Authority (EMA) reports that about 80 percent of the countrys electricity demand comes from natural gas today. In November 2003 and June 2004, Singapore experienced power outages that were the result of natural gas supply disruptions. After the June 2004 incident, the government set up the Energy System Review Committee (ESRC) to study the root causes of the gas disruptions and propose measures to strengthen the energy systems reliability. Among other recommendations, the ESRC called upon Singapore to diversify its sources of natural gas, as it has historically relied on Indonesia for its natural gas imports.