Singapore expects all parties to honour commercial gas contracts, says PM Wong after Indonesia cut exports

Singapore's Prime Minister Lawrence Wong emphasized the importance of honoring commercial gas contracts during the People's Action Party convention on Sunday, Oct 25. He stated that Singapore expects all parties to "honour their commitments" and that the country's gas importer will take necessary steps to protect its rights and interests under such agreements.

Indonesia recently cut its gas exports to Singapore, starting on Saturday, in order to prioritize domestic electricity needs. Singapore's Energy Market Authority reported that the reduction of 31 million standard cubic feet of gas per day is equivalent to less than 2% of the country's total daily gas demand.

Wong explained that Singapore has prepared for such risks by investing in liquefied natural gas (LNG) terminals, allowing the country to import gas from various sources without relying on pipelines alone. However, he acknowledged that Singapore must explore alternative, cleaner sources of power for reliable electricity generation around the clock.

The prime minister also addressed concerns about the safety of nuclear energy in a densely populated country like Singapore, emphasizing that safety is the top priority. Singapore is currently undergoing an assessment by the International Atomic Energy Agency (IAEA) to evaluate its readiness to adopt nuclear energy, with the first phase set to begin in 2027.

Wong highlighted the importance of preparing for the future, where computing power will play a significant role in the economy. He stressed that preparing for tomorrow requires assessing risks and trade-offs, engaging Singaporeans, and making informed decisions.

In recent news, Singapore has been sending notices to firms under the Transboundary Haze Pollution Act due to the country's worst haze episode since 2015. Wong emphasized the need for cooperation from other countries to tackle such global issues, while also stressing that Singapore is taking actions to protect its citizens and strengthen its response.