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Indonesia gas export cuts account for less than 2% of Singapore's daily needs: EMA

Indonesia has begun cutting natural gas exports to Singapore but the reduction amounts to less than 2 per cent of Singapore's total daily gas demand, said the Energy Market Authority (EMA) on Saturday (Oct 24).The reduction, announced by Indonesian authorities on Saturday, comes days after Indonesia's Energy and Mineral Resources Minister Bahlil Lahadalia on Oct 21 said that Indonesia would...

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Indonesia gas export cuts account for less than 2% of Singapore's daily needs: EMA
Indonesia gas export cuts account for less than 2% of Singapore's daily needs: EMA

Indonesia has begun cutting natural gas exports to Singapore but the reduction amounts to less than 2 per cent of Singapore's total daily gas demand, said the Energy Market Authority (EMA) on Saturday (Oct 24).

The reduction, announced by Indonesian authorities on Saturday, comes days after Indonesia's Energy and Mineral Resources Minister Bahlil Lahadalia on Oct 21 said that Indonesia would consider reviewing energy export agreements to prioritise domestic demand.

A day later, on Oct 22, Bahlil doubled-down on his comments during the inauguration of a gas facility, saying he is similarly prepared to evaluate energy exports with countries deemed "uncooperative and disrespectful".

In a statement to the media, EMA said the total reduction amounts to 17 billion British thermal units per day (bbtud) over a period of 18 days.

"This is less than 2% of our total daily gas demand of more than 1,000 bbtud. EMA understands that our importers will pursue all relevant recourse in their contracts for the gas supply disruption."

The authority added that there are contingency plans in place to deal with such reductions, pointing to reductions of between 20 bbtud to 100 bbtud owing to planned or urgent maintenance in recent months.

These reductions were replaced with other gas sources without incident, EMA said.

Diversification of import sources

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.

Battling wildfires since August and rising domestic frustrations, there has been a spike in sharp rhetoric from prominent Indonesian figures and on social media over the past three weeks.

But neither Malaysian nor Singaporean leaders have criticised Indonesia or its leaders, instead offering help and calling for strong actions against companies which are found to have contributed to the fire.

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