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Indonesia gas cuts: Singapore's importer will take 'necessary steps' to protect rights, interests under contract, says PM Wong

Piped gas supplies between Singapore and Indonesia are covered by commercial contracts and the Republic expects all parties to honour their commitments, said Prime Minister Lawrence Wong."Singapore’s gas importer will take the necessary steps to protect its rights and interests under these contracts," said PM Wong at the People's Action Party's (PAP) convention held at Singapore Expo on Sunday (Oct...

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Indonesia gas cuts: Singapore's importer will take 'necessary steps' to protect rights, interests under contract, says PM Wong
Indonesia gas cuts: Singapore's importer will take 'necessary steps' to protect rights, interests under contract, says PM Wong

Piped gas supplies between Singapore and Indonesia are covered by commercial contracts and the Republic expects all parties to honour their commitments, said Prime Minister Lawrence Wong.

"Singapore’s gas importer will take the necessary steps to protect its rights and interests under these contracts," said PM Wong at the People's Action Party's (PAP) convention held at Singapore Expo on Sunday (Oct 25).

Indonesia is one of the main sources for natural gas imports for Singapore, with current contracts between the two countries expiring in end-2028.

On Saturday, the Energy Market Authority said in response to Indonesia's export cuts that the total reduction of 17 billion British thermal units per day (btud) over a period of 18 days amounts to less than 2 per cent of the country's total daily gas demand of more than 1,000 bbtud.

Diversification of import sources

Contracts and cuts aside, PM Wong said Singapore has been preparing for such risks.

"We invested in liquefied natural gas (LNG) terminals to import natural gas from different countries, without having to rely on pipelines. This gives us more options to manage any disruptions to our gas supply."

Singapore GasCo, set up in 2025, acts as a central gas aggregator in the country's gas procurement.

It is intended to ensure that the country is adequately contracted for natural gas at all times, said its chief executive Allan Heng in an interview for the Singapore International Energy Week.

EMA said that Singapore GasCo is operationally ready to import more LNG at any time.

Besides Indonesia, the city state also imports natural gas from other sources around the world, it added.

"Power generation companies are further required to maintain sufficient fuel reserves for power generation, including diesel reserves. We therefore have sufficient energy supplies to meet our national demands," it stated.

EMA also said that it will continue to work with the energy industry and its partners to ensure the reliability and resilience of Singapore's energy supply.

@asiaone Singapore Prime Minister Lawrence Wong, who is also the People’s Action Party’s (PAP) secretary-general, said at the party’s awards and conference on Oct 25 that the country has options to manage such disruptions without having to rely on pipelines. #sgnews #Singapore #Energy #LNG #Indonesia ♬ original sound - AsiaOne

Potential of nuclear energy

Meanwhile, Singapore must also look beyond natural gas, and into cleaner sources of power that can provide reliable electricity around the clock, PM Wong said.

He noted that there are concerns about the safety of nuclear power in a small and densely populated country like Singapore, reiterating that Singapore takes such concerns seriously.

"Safety must come first," he said. "But we should not rule out an option simply because it is difficult or controversial."

The risks and trade-offs will be assessed carefully, and Singaporeans will be engaged, while the right decisions are made to secure the country's energy future, the prime minister added.

Singapore will evaluate its ability to potentially deploy nuclear energy through an assessment by the International Atomic Energy Agency (IAEA) in 2027.

The assessment, called the Integrated Nuclear Infrastructure Review (INIR), is part of the IAEA milestones approach — a structured, internationally recognised framework to guide countries in understanding the commitments and obligations associated with developing a nuclear power programme.

The milestones approach comprehensively assesses 19 areas, such as capabilities to manage nuclear safety, radioactive waste, and emergency planning.

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