Indonesia gas export cut unlikely to raise Singapore electricity prices, says Energy Minister Tan See Leng

Singapore's Minister for Energy, Trade and Industry (Energy and Industry) Tan See Leng told reporters after the People's Action Party conference that the recent cut in natural gas exports from Indonesia is unlikely to impact electricity prices in the short term. He noted the reduction amounts to under 2% of Singapore's total daily gas consumption and that the country has sufficient supplies to meet demand.

"In the short term, the prices would not really affect that much. In fact, if anything at all, we should be looking at the world prices because a lot of our gas, the unit price is actually pegged to the movement of some of the key global index itself," Tan said.

Tan highlighted Singapore's multiple layers of defence, including diversified gas sources, a standby liquefied natural gas (LNG) facility, and the readiness of Singapore GasCo to import additional LNG if needed. Power generators are also required to keep adequate diesel reserves as a backup.

An Energy Market Authority spokesperson said the cut totals 31 million standard cubic feet of gas per day, equivalent to 17 British thermal units per day over 18 days. Tan urged the public to remain calm, noting that Singapore has managed similar reductions without incident and that the government will continue to ensure energy reliability and resilience.

Beyond natural gas, Singapore is exploring alternative energy options such as biomethane, geothermal, solar and, potentially, nuclear power, though no decision has been made on the latter. Prime Minister Lawrence Wong reiterated that parties to commercial gas contracts are expected to honour their commitments, and the government will protect the rights and interests of its gas importer, Gas Supply Private Limited.

Tan said the two countries maintain strong bilateral relations, citing long-standing partnerships between President Prabowo Subianto and Singapore's leadership. He acknowledged Indonesia's domestic supply needs and said Singapore will monitor the situation closely.