Customer deliveries by Singapore’s Gas Supply were affected after Indonesia lowered pipeline gas exports, while Prime Minister Lawrence Wong called for commercial commitments to be honored, Channel NewsAsia reported.
Indonesia began the reductions on Oct. 24, SKK Migas chief Djoko Siswanto told ANTARA. SKK Migas said Natuna gas would be sent to PLN Batam, while gas from Sumatra would support electricity needs in Batam, Bintan and Sumatra. The regulator cited Article 8, Paragraph 1 of Indonesia’s Oil and Gas Law as the basis for prioritizing domestic gas use.
Gas Supply told Channel NewsAsia that the temporary reduction from its Indonesian upstream supplier had affected deliveries to customers. The company did not specify how many customers were affected or how long the impact would last.
Wong made his remarks at the People’s Action Party convention on Oct. 25, Channel NewsAsia reported. He said parties should “honour their commitments” and said the gas importer would take steps to protect its rights and interests under the contracts.
Singapore’s Energy Market Authority (EMA) said the reduction was less than 2% of daily gas demand, which it put at more than 1,000 billion British thermal units per day (BBTUD). EMA said Singapore GasCo was ready to import more liquefied natural gas (LNG), and power generators must maintain fuel reserves, including diesel.
EMA also said Singapore had recently covered gas supply reductions of 20 to 100 BBTUD per day during planned or urgent maintenance by using other sources, without incident.
