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SINGAPORE \u2013 The reduction in the gas supply from Indonesia will make up less than 2% of Singapore\u2019s total daily gas demand, said the Energy Market Authority (EMA) in the evening of Oct 24.<\/p>\n
EMA was responding to queries from The Straits Times following announcements from an Indonesian official that it will be cutting gas exports<\/span><\/a> to Singapore via two pipelines directly linked to the city-state.<\/p>\n The chief of Indonesia\u2019s upstream oil and gas regulator SKK Migas Djoko Siswanto had been quoted in Indonesian media outlets on Oct 23 saying that the country will be cutting natural gas exports to Singapore by 31 billion British thermal units per day (BBTUD) from Oct 24.<\/p>\n The EMA spokesperson said that based on the information from Singapore\u2019s natural gas importers, the total reduction amounts to 17BBTUD over a period of 18 days.<\/p>\n Singapore\u2019s total daily gas demand amounts to more than 1,000 BBTUD, he added.<\/p>\n \u201cEMA understands that our importers will pursue all relevant recourse in their contracts for the gas supply disruption,\u201d the spokesman added.<\/p>\n He said the authority has contingency plans in place to deal with such reductions.<\/p>\n The EMA spokesman cited how Singapore had experienced reductions in its gas supply ranging from 20 BBTUD to 100 BBTUD in recent months, due to planned or urgent maintenance. That shortfall had been replaced with other gas sources without incident, he said.<\/p>\n EMA said Singapore has sufficient energy supplies to meet national demands.<\/p>\n Singapore relies on natural gas for 95% of its electricity needs. This gas can come in piped form from Malaysia and Indonesia, or in liquefied form (LNG) from all over the world.<\/p>\n The Republic has also been stepping up efforts to diversify its energy sources further, by investing in solar panel deployment domestically, and doing research on emerging technologies such as nuclear and geothermal energy.<\/p>\n The EMA spokesman said the Singapore GasCo \u2013 the Republic\u2019s central procurer and supplier of natural gas \u2013 is operationally ready to import more at any time.<\/p>\n Said EMA: \u201cBesides Indonesia, Singapore imports natural gas from other sources around the world.\u201d<\/p>\n \u201cPower generation companies are further required to maintain sufficient fuel reserves for power generation, including diesel reserves.\u201d<\/p>\n Meanwhile, one of Singapore\u2019s largest gas suppliers said that its delivery of gas to customers here has been affected by \u201ctemporary reductions\u201d in supply from its supplier in Indonesia.<\/p>\n The firm Gas Supply said it has been in direct communication with customers who are impacted and appreciate their patience and understanding during this period.<\/p>\n \u201c(The company) continues to engage closely with our upstream supplier to manage the situation,\u201d said the importer wholly owned by Temasek.<\/p>\n The gas cuts come after remarks made on Oct 22 by the country\u2019s Energy and Mineral Resources Minister Bahlil Lahadalia.<\/p>\n Bahlil, who is also Coordinating Minister for Downstreaming and Energy Transition, said that Indonesia could stop exporting energy to countries that failed to show it mutual respec<\/span><\/a>t.<\/p>\n According to media reports, the cuts affected only Singapore because the pipelines from Natuna and Sumatra were connected directly to the city-state.<\/p>\n Exports from Natuna would be reduced by 15 BBTUD, while another 16 BBTUD would be cut from the Jambi Merang gas in Sumatra.<\/p>\n This had been framed in Indonesian media reports as part of the President Prabowo Subianto\u2019s government\u2019s moves to prioritise domestic energy needs amid growing concerns over energy security.<\/p>\n Checks by ST found that natural gas from Sumatra is exported to Gas Supply.<\/p>\n Meanwhile, gas from Indonesia\u2019s Natuna Sea is transported through a direct subsea pipeline to a receiving facility operated by Sembcorp Gas.<\/p>\n According to Sembcorp Industries\u2019 2023 annual report, the company entered into a sales agreement valued at about $1.9 billion to import piped natural gas from the West Natuna gas fields.<\/p>\n Both agreements were expected to last until 2028.<\/p>\n ST has contacted Sembcorp with queries.<\/p>\n Indonesia has been planning to reduce gas exports to Singapore for several years to meet growing domestic demand. In 2022, Jakarta agreed to extend gas supplies to Singapore until 2028, but at lower volumes than under the previous contract.<\/p>\n \u00a0David Broadstock, an economist who monitors the energy sector, called the abrupt cut a \u201csurprising event\u201d for Singapore\u2019s energy supply chain.<\/p>\n But he noted the Republic is well-prepared to handle it, with potential alternatives from countries like the US.<\/p>\n He pointed out the timing of the cuts, just before the Singapore International Energy Week commencing on Oct 26, and during a period of increased complexity between the two nations over transboundary haze enforcement.<\/p>\n Said Broadstock: \u201cThere is a question mark over whether there is a political element tied to this action, potentially making it a reaction to the haze issue.<\/p>\n \u201cI wouldn\u2019t say for sure that it is a definitive driving factor, but it certainly cannot be ruled out.\u201d<\/p>\n Broadstock expects that buyers of natural gas will immediately look to secure alternative contracts, potentially drawing from the US or the Middle East to fill the gap.<\/p>\n Despite the need to source presumably more expensive alternatives for the shortfall, he does not foresee a major price surge for consumers.<\/p>\n He said: \u201cWe shouldn\u2019t expect massive market disruptions.<\/p>\n \u201cIt isn\u2019t the global market taking a shock, but rather a preferred supplier taking a step back.\u201d<\/p>\n<\/div>\n SINGAPORE \u2013 The reduction in the gas supply from Indonesia will make up less than 2% of Singapore\u2019s total daily gas demand, said the Energy…<\/p>\n","protected":false},"author":1,"featured_media":95336,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[2611],"tags":[],"class_list":["post-95335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buzz-headlines","wpcat-2611-id"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/95335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=95335"}],"version-history":[{"count":0,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/95335\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/media\/95336"}],"wp:attachment":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=95335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=95335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=95335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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