PM Wong calls for gas contracts to be honored — Channel NewsAsia

Singapore Prime Minister Lawrence Wong said that all parties that have entered into commercial gas supply contracts must honor their commitments. The statement came after Indonesia began cutting natural gas exports to Singapore, Channel NewsAsia reports.

Supply cuts

Indonesia began reducing gas exports to Singapore on Saturday. Indonesia's oil and gas upstream regulator, SKK Migas, explained the decision by redirecting more of the resource to meet domestic electricity needs.

According to Singapore's Energy Market Authority, the reduction amounts to 31 million standard cubic feet of gas per day. This is less than 2% of the country's total daily gas demand.

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Singapore's position

Wong noted that Singapore's gas importer would take the necessary measures to protect its rights and interests under the contracts concluded. About 95% of electricity in the country is generated from natural gas, significant volumes of which are supplied by pipeline from Indonesia.

According to the prime minister, Singapore had prepared for the risks of supply disruptions by investing in terminals to import liquefied natural gas from various countries. This gives the state alternative options in the event of problems with pipeline supplies.

Assessment of nuclear energy

Wong also said that the country must consider cleaner sources of electricity capable of ensuring reliable round-the-clock supply, including nuclear energy. Starting in 2027, Singapore will begin an assessment as part of an International Atomic Energy Agency review to determine the country's ability to make an informed decision on the use of nuclear energy.