SINGAPORE – The Workers’ Party said it regrets the Indonesian government’s decision to cut natural gas exports to Singapore if the move was prompted by recent unrelated developments, and stressed the importance of honouring international commercial contracts.
In a statement posted on Facebook on Oct 25, the opposition party backed Prime Minister Lawrence Wong’s call earlier in the day for commercial gas supply contracts to be honoured.
“The WP agrees that the sanctity of international commercial contracts, particularly those that cover our key utilities, is an issue of national importance,” the party said.
It added that while the extent of the current reduction of gas exports to date by Indonesia appears tolerable, the episode is a reminder of the importance of diversifying Singapore’s energy supply chains, especially in an increasingly unpredictable international environment.
The WP’s remarks come amid tensions over the transboundary haze affecting Singapore and the region.
The party noted that recent comments by current and former Indonesian officials on the haze had become conflated in some quarters with allegations of a conspiracy by Singapore’s sovereign wealth funds to influence Indonesia’s standing in financial markets, as well as Indonesia’s latest decision to curtail gas exports.
Indonesia announced on Oct 24 that it would reduce natural gas exports to Singapore by 31 billion British thermal units per day (BBTUD), as part of efforts to prioritise domestic energy needs. The reduction involves gas supplied through pipelines from Natuna and Sumatra.
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