Singapore vows to protect contractual rights over Indonesia’s gas export cut; PM confirms nuclear feasibility study

Singapore's Prime Minister Lawrence Wong pledged on October 25 to safeguard the contractual rights of gas importers following Indonesia's decision to reduce gas exports. Speaking at the People's Action Party conference, Wong emphasized that while piped natural gas remains crucial for power generation, investments in liquefied natural gas (LNG) terminals have diversified Singapore's supply chain.

According to The Straits Times, Wong affirmed that Singapore's gas importers would employ all available measures to uphold their contractual obligations, warning that the country would take necessary steps to protect its rights under these agreements.

Indonesia's upstream regulator, SKK Migas, had previously announced a 31 billion British thermal units per day (BBTUD) cut in piped gas exports to Singapore, effective October 24, as part of President Prabowo Subianto's domestic energy initiative. The Energy Market Authority (EMA) clarified that Singapore's local importers are facing a smaller reduction of 17 BBTUD over the next 18 days, which accounts for less than 2 percent of the nation's daily gas demand, which exceeds 1,000 BBTUD.

Looking to the future, Wong confirmed that Singapore is conducting feasibility studies into nuclear energy, despite concerns over safety and waste disposal in a densely populated city-state. Wong stated, "We take the concerns very seriously. Safety must come first. But we should not rule out an option simply because it is difficult or controversial."

The prime minister added that Singapore will undergo an International Atomic Energy Agency assessment in 2027 to assess its readiness for nuclear deployment. Wong highlighted the importance of addressing cross-border challenges, including transboundary haze and online scams, and emphasized Singapore's commitment to protecting its citizens through domestic vigilance while collaborating with regional partners to tackle these issues at their source.