Indonesia defends reduced gas exports to Singapore, cites contract limits and domestic needs
Indonesia says its recent cut of about 8% in pipeline gas shipments to Singapore complies with existing contracts and is driven by maintenance and domestic electricity demand.
Indonesia's Energy and Mineral Resources Minister Bahlil Lahadalia said the country reduced piped gas exports to Singapore by 31 million standard cubic feet per day, roughly 8% of the volume supplied from the Natuna Sea and Sumatra, without breaching contractual minimums.
"Do not lecture Indonesia about its commitment to honouring and respecting contracts," Bahlil told reporters on Oct 26, adding that the cuts remain within the minimum limits allowed under the agreements.
He attributed the reduction to maintenance shutdowns and rising domestic electricity demand, and indicated that force-majeure provisions could be considered if circumstances warrant, though no formal invocation was confirmed.
Singapore's Energy Market Authority reported that the cuts amount to less than 2% of its daily gas demand, and Prime Minister Lawrence Wong emphasized the expectation that all parties honour their contractual commitments.
Indonesia's upstream regulator SKK Migas announced the cuts total 31 billion British thermal units per day. The two nations continue negotiations on electricity export arrangements, with Singapore granting conditional licences for six Indonesian projects totaling 3 GW, though pricing details remain unresolved.
Bahlil also mentioned plans to assess nuclear power options, including potential sites in the Riau Islands, Halmahera, Kalimantan and Sumatra, as part of broader efforts to enhance energy security.