Indonesian minister claims Singapore re-exports some Indonesian LNG shipments
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Indonesia's Coordinating Minister for Downstreaming and Energy Transition said Singapore may be trading and re-exporting a portion of the LNG it imports from Indonesia, though he offered no evidence.
Indonesia's Coordinating Minister for Downstreaming and Energy Transition, Bahlil Lahadalia, said on Thursday that he believes some of the 148 LNG cargoes shipped to Singapore are not used domestically but are instead traded and re-exported to other countries. He made the remarks after meeting President Prabowo Subianto in Jakarta and did not provide supporting evidence.
The statement follows Indonesia's decision on Oct. 24 to cut piped natural gas exports to Singapore by 31 million standard cubic feet per day, a reduction that the Energy Market Authority said represents less than two percent of Singapore's total daily gas demand. Singapore's Minister for Energy, Trade and Industry, Tan See Leng, indicated the cuts are unlikely to affect electricity prices in the short term.
Singapore's Prime Minister Lawrence responded on Oct. 25 that all parties are expected to honour existing commercial contracts. Bahlil defended Indonesia's actions, noting the cut was within contractual minimums and was driven by maintenance shutdowns and domestic demand.
"Do not lecture Indonesia about its commitment to honouring and respecting contracts," Bahlil said on Oct. 26.
The allegations arise as both governments work to improve bilateral relations, including plans announced on Oct. 27 for a joint task force to hold companies accountable for forest-fire incidents that cause transboundary haze.