Singapore urges honor of gas contracts as Indonesia cuts exports

Singapore's gas importer will take steps to safeguard its contractual rights after Indonesia reduced natural gas shipments to the city-state, Prime Minister Lawrence Wong said at a People’s Action Party (PAP) convention on Sunday. The reduction, amounting to about 31 million standard cubic feet per day, represents less than 2 percent of Singapore’s total daily gas demand, according to the Energy Market Authority.

"The gas supplies are covered by commercial contracts. We expect all parties to honour their commitments, and Singapore’s gas importer will take the necessary steps to protect its rights and interests under these contracts," Wong said, adding that the country has been preparing for such supply risks.

Wong noted that Singapore is expanding its liquefied natural gas (LNG) import capacity to source gas from multiple countries, reducing reliance on pipeline imports from Indonesia. He also said the government is studying nuclear power as a longer-term option, acknowledging safety concerns but stressing the need for a careful risk assessment.

The prime minister used the occasion to emphasize Singapore’s broader strategic outlook, describing the world as “more dangerous and troubled” but asserting that Singapore remains a trusted partner for businesses and investors. He cited recent diplomatic trips by President Tharman Shanmugaratnam to Sweden and his own visits to Qatar and the United Arab Emirates as evidence of strong international ties.

Wong also addressed domestic challenges, saying the government will continue to tackle cost-of-living pressures, support workers facing job transitions, and enhance assistance for families and seniors. He called for a collaborative approach, urging Singaporeans to adapt, learn new skills, and support one another.