Singapore’s gas importer, Gas Supply, may pursue commercial remedies if Indonesia’s recent cuts to gas exports 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) noted that the cut represents less than 2% of Singapore’s total daily gas demand, which exceeds 1,000 BBTUD. Tan reassured that Singapore has sufficient replacement gas, including liquefied natural gas (LNG), to meet its needs. He also downplayed the short-term impact on electricity prices, attributing price fluctuations more to global market movements.
Gas Supply, owned by Temasek, reported that deliveries to customers were affected by temporary supply reductions from Indonesia. The EMA specified that the total reduction amounts to 17 BBTUD over 18 days, affecting pipelines from Natuna and Sumatra. Tan emphasized Singapore’s energy security measures, including diversified gas sources and diesel reserves for power generation companies.
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.