Indonesia says gas supply to Singapore still within contract terms despite export cuts
Indonesia's energy minister has said the amount of natural gas it is supplying to Singapore is still meeting the minimum level stipulated under a contract despite the recent export cut.
Indonesia has reduced its gas exports to Singapore by 31 million standard cubic feet per day, citing maintenance and increased domestic demand. Singapore's Prime Minister Lawrence Wong expects all parties to honor their contracts, suggesting Indonesia should not be taught how to do so. Energy Minister Bahlil Lahadalia stated the cut represents 8% of Indonesia's gas supply to Singapore via pipelines and 2% of Singapore's daily gas demand, unlikely to significantly impact energy security now.
However, the real challenge arises when existing contracts expire in 2028. The reduction is due to a maintenance shutdown and higher domestic demand in Indonesia, where a 16-hour blackout recently occurred. Lahadalia prioritized natural resources for domestic use and plans to review contracts for energy security. Reviewing the existing electricity export deal is also on the table.
Rystad Energy analyst Prateek Pandey believes Singapore has been preparing for this by diversifying its gas supply, so current reductions should be manageable unless cuts deepen or field production is affected.
Written by urgent.news from VnExpress Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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