New: Singapore Expects Indonesia to Honour Gas Contracts

Singapore Prime Minister Lawrence Wong has said Singapore expects all parties to honour their commitments after the Indonesia gas export cut, adding that the country’s importer will take the necessary steps to protect its rights and interests under the supply contracts.

Wong made the remarks on Sunday (Oct 25) while addressing the People’s Action Party (PAP) conference, according to Malay Mail, which cited The Straits Times.

Indonesia Gas Export Cut and Singapore’s Response

Indonesia’s upstream oil and gas regulator, SKK Migas, announced it was reducing piped gas exports to Singapore by 31 billion British thermal units per day (BBTUD) from Saturday (Oct 24). SKK Migas chief Djoko Siswanto said the move was made to keep domestic gas supply for electricity reliable.

Indonesian media reported that the cuts involve 15 BBTUD from the Natuna offshore corridor and 16 BBTUD from the Jambi Merang field in Sumatra.

Singapore’s Energy Market Authority (EMA) said local importers face a smaller reduction of 17 BBTUD spread over 18 days, which is less than 2 per cent of national daily demand of more than 1,000 BBTUD. The EMA said importers would pursue all relevant recourse in their contracts, and that contingency plans were in place.

Temasek-owned Gas Supply said deliveries to local industrial clients faced temporary reductions from its Indonesian upstream supplier.

The cut came after Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia warned on Oct 22 that Jakarta could restrict energy shipments to nations that fail to show mutual respect, amid a regional dispute over haze from wildfires in Borneo and Sumatra.

Wong Confirms Nuclear Feasibility Studies

Wong said piped natural gas remains central to power generation, and that investments in LNG import terminals have diversified Singapore’s supply chains.

He said Singapore needs cleaner sources of power to provide reliable electricity around the clock, and confirmed that feasibility studies into nuclear energy are ongoing despite safety and waste concerns.

“We take the concerns very seriously. Safety must come first,” Wong said, adding that an option should not be ruled out simply because it is difficult or controversial.

According to the report, Singapore will undergo an International Atomic Energy Agency (IAEA) assessment in 2027 to gauge its readiness for deployment.

Wong also said cross-border problems such as transboundary haze and online scams require regional cooperation as well as vigilance at home, and that Singapore will work with partners to tackle them at source.

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