Gas Supply may pursue remedies if contract breached following Indonesia’s export cuts: Tan See Leng
Tan said electricity prices would not be affected that much in the short term due to the move.
Minister for Energy, Trade and Industry Tan See Leng stated that Gas Supply will contact its suppliers to determine if there has been a violation of the contract following Indonesia's decision to reduce gas exports to Singapore. The cuts, effective October 24, involve a reduction of 31 billion British thermal units per day (BBTUD) from Indonesia's usual 40% pipeline supply to Singapore.
This reduction makes up less than 2% of Singapore's daily gas demand, according to the Energy Market Authority. Tan assured that Singapore has sufficient replacement gas sources, including liquefied natural gas. Prices are unlikely to be significantly impacted in the short term due to Indonesia's move, as they are typically tied to global indexes.
Gas Supply had already adjusted its deliveries due to temporary reductions from its Indonesian supplier. The total reduction amounts to 17 BBTUD over 18 days, based on information from Singapore's natural gas importers. Singapore relies on natural gas for approximately 95% of its electricity needs, with 40% sourced from pipelines in Malaysia and Indonesia.
The reduction affects only Singapore's gas supply, as the relevant export pipelines were directly connected to the city-state.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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