Singapore’s gas importer, Gas Supply, may pursue commercial remedies if Indonesia’s recent cuts in gas supply breach existing contracts. Minister for Energy, Trade and Industry Tan See Leng stated that Gas Supply will engage suppliers to assess the situation and take necessary actions. The reduction, amounting to 31 billion British thermal units per day (BBTUD) from October 24, was framed by Indonesia as a move to prioritize domestic energy needs.
The Energy Market Authority (EMA) assured that the reduction is less than 2% of Singapore’s total daily gas demand, which exceeds 1,000 BBTUD. Tan emphasized that Singapore has sufficient replacement gas, including liquefied natural gas (LNG), to meet its needs. He also noted that electricity prices are unlikely to be significantly affected in the short term due to global price fluctuations.
Gas Supply, owned by Temasek, reported that deliveries to customers have been affected by temporary supply reductions from Indonesia. The EMA clarified that the total reduction over 18 days amounts to 17 BBTUD. Tan highlighted Singapore’s multiple layers of defense for energy security, including diversifying gas sources and maintaining diesel reserves for power generation.
In the medium term, Singapore is building a second LNG terminal and exploring alternative energy sources like biomethane and geothermal. Tan will discuss the Republic’s future energy mix at the Singapore International Energy Week conference on October 26. Prime Minister Lawrence Wong reiterated the importance of honoring commercial contracts and protecting Singapore’s rights and interests.