Singapore seeks contract compliance as Indonesia cuts gas exports
Indonesia announced a 31 BBTUD reduction, while Singapore’s energy regulator reported a smaller cut received by importers over 18 days.
Singapore Prime Minister Lawrence Wong has called for gas supply contracts to be honoured following Indonesia’s decision to reduce exports to the city-state. He said Singapore’s gas importers would take the necessary measures to defend their contractual rights and interests.
Wong’s remarks were reported by The Straits Times. He said natural gas generates most of Singapore’s electricity, leaving the country exposed to disruptions in imported supplies.
Singapore’s Energy Market Authority (EMA) said the reduction in Indonesian supplies represented less than 2 per cent of the country’s daily gas requirements. Citing importers’ data, an EMA spokesperson put the reduction received over an 18-day period at 17 BBTUD. Singapore’s total daily requirement exceeds 1,000 BBTUD.
Separately, Djoko Siswanto, head of Indonesia’s upstream oil and gas regulator SKK Migas, announced export cuts of 15 BBTUD from Natuna and 16 BBTUD from Sumatra, amounting to 31 BBTUD. He said the adjustment was intended to maintain reliable and sustainable gas supplies for domestic electricity generation.
The Sumatra allocation being reduced comes from the Jambi Merang working area. Djoko said the pipeline export cuts applied only to Singapore because the export pipelines connect directly to that country.
Wong said Singapore had prepared for supply risks by building an LNG terminal that allows imports from different countries rather than relying on pipelines. He also said Singapore was seriously studying nuclear power as it sought cleaner, dependable alternatives to natural gas.
