Singapore faces higher electricity costs after Qatar shut its Ras Laffan LNG facility following drone attacks. The Middle Eastern nation accounts for about half of Singapore's LNG imports, with the city-state relying on imported natural gas for more than 90% of its electricity generation. Spot prices in Asia have more than doubled since the shutdown.

Qatar's facility represents roughly a fifth of global LNG supply, forcing Singapore to compete for replacement cargoes on the spot market. The country typically receives two to three shipments monthly from Qatar under long-term contracts. Without these deliveries, Singapore must source alternative supplies at elevated prices while buyers across Asia and Europe also scramble for limited gas.

SP Group, Singapore's state-owned grid operator, adjusts power prices quarterly based on fuel costs. The company raised electricity rates by 10% in 2022 after Russia's Ukraine invasion disrupted global gas markets. While Singapore's import volumes are relatively small compared to other Asian buyers, the extended shutdown will likely push power bills higher as the country pays premium prices for replacement LNG cargoes.