KUALA LUMPUR, Clean energy has made little headway in the global energy mix despite rapid growth in solar, said Singapore GasCo CEO Alan Heng, stressing the need for a pragmatic balance between renewable energy and fossil fuels.
Alan Heng, CEO of Singapore GasCo (middle), says: “At some point, whatever fields you have today [will] decline, and unless more investments are put into it, there will not be a replacement for the current supply.”
Speaking at SIEWConnects@OCBC on Aug 22, Heng noted that clean energy has held steady at around 12.5% of global supply over the past 15 years. Demand for energy continues to rise with the growth of Asia’s middle class, artificial intelligence, robotics, and autonomous vehicles, he added.
“Humanity has always been better at finding ways to use energy than to produce more of it. That’s not going to change,” said Heng, who previously led Pavilion Energy.
He pointed out that in 2000 only 60% of Asia had electricity, but today nearly 96% does. Meeting this demand — and doing so sustainably — remains a challenge.
While Singapore has achieved strong economic growth thanks to affordable and reliable energy, Heng said countries like Indonesia and Vietnam also aspire to similar progress. “We must balance net-zero targets with realities on the ground,” he said.
Heng, a veteran in the LNG sector, believes the world will still need natural gas for the next 20 years. He was cautious about hydrogen and ammonia, saying they remain viable only in limited clusters for now.
He also highlighted hurdles such as Indonesia’s reliance on coal and Malaysia’s fossil fuel subsidies, which make it harder to shift toward clean energy. For alternative fuels to succeed, Heng said, they must be cost-competitive and commercially bankable.
Heng warned that neglecting oil and gas investment would create supply shortages and price volatility. Oil and gas reserves decline by about 4%–5% annually, he said, and without reinvestment, supply will not keep up with demand. “If we accept the price shocks, then fine. But if not, we must find a pragmatic balance,” Heng said.
Singapore GasCo, set up in May 2024, consolidates natural gas procurement and supply for Singapore’s power sector, allowing the country to secure better long-term contracts and more stable energy prices, according to the Energy Market Authority (EMA). The forum was part of the global lead-up to the Singapore International Energy Week 2024, happening from Oct 27 to 31.
