PM Wong says Singapore expects all parties to honour gas contracts after Indonesia cuts exports
Indonesia began cutting gas exports on Saturday. Mr Wong said Singapore's gas importer will take steps to protect its rights and interests.
Prime Minister Lawrence Wong has said Singapore wants every party to its gas supply contracts to keep to their side of the deal, after Indonesia reduced its gas exports. Addressing the convention of the People's Action Party (PAP) on Sunday (Oct 25), he added that the importer of Singapore's gas would act as required to safeguard its rights and interests.
Indonesia began the reduction on Saturday
On Saturday, Indonesia began to lower the volume of natural gas it ships to Singapore. In answer to questions from CNA, SKK Migas, the Indonesian regulator for upstream oil and gas, said the step aimed to redirect additional supply towards the country's domestic power needs.
According to Singapore's Energy Market Authority, the 31 million standard cubic feet daily cut represents under 2 per cent of the nation's overall gas demand each day. Natural gas fuels about 95 per cent of the electricity generated in Singapore, and a considerable share of that gas comes in through pipelines from Indonesia.
Mr Wong said the supplies fall under commercial contracts. He told the convention that all parties are expected to honour their commitments under them.
Preparing for supply risks
Mr Wong said Singapore has been getting ready for such risks. Singapore has put money into liquefied natural gas (LNG) terminals, so it can bring in gas from a range of countries without relying on pipelines, which gives it more choices if supply is disrupted.
He added that Singapore must also look beyond natural gas, to cleaner power that can deliver dependable electricity at all hours. For that reason, authorities are examining what nuclear energy could offer.
Mr Wong acknowledged worries about the safety of nuclear power in a small and densely populated country, and said "Safety must come first". He also said: "But we should not rule out an option simply because it is difficult or controversial."
Beginning in 2027, the International Atomic Energy Agency (IAEA) will carry out an evaluation of Singapore to gauge whether the country can make an informed decision about taking up nuclear energy.
Mr Wong also pointed to the economy of the future, saying computing power will become increasingly important and needs enormous amounts of energy.
