SINGAPORE (The Straits Times/ANN): Singapore expects all parties to honour their commitments made under commercial contracts, and the country’s gas importer will take necessary steps to protect its rights and interests, said Prime Minister Lawrence Wong.
Speaking at the PAP conference on Oct 25, he noted that Indonesia announced cuts to its gas exports to Singapore the day before.
Most of Singapore’s electricity is currently generated using natural gas, and a significant amount of gas is imported through pipelines from Indonesia, he added.
“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,” PM Wong said.
Indonesia said it would cut natural gas exports to Singapore by 31 billion British thermal units per day (BBTUD) from Oct 24.
This was framed in Indonesian media reports as part of President Prabowo Subianto’s government moves to prioritise domestic energy needs amid growing concerns over energy security.
The reduction affects gas supplied through pipelines from Natuna and Sumatra, and Indonesia’s upstream oil and gas regulator SKK Migas said the cuts would affect only Singapore because the relevant export pipelines were connected directly to the city-state.
The Energy Market Authority (EMA) said in response that the reduction in the gas supply from Indonesia will make up less than 2% of Singapore’s total daily gas demand.
EMA’s spokesman said that based on the information from Singapore’s natural gas importers, the total reduction amounts to 17 BBTUD over a period of 18 days.
Singapore’s total daily gas demand amounts to more than 1,000 BBTUD.
Minister for Energy, Trade and Industry (Energy and Industry) Tan See Leng said that local gas importer Gas Supply will engage its suppliers to find out if there has been a breach of contract and pursue commercial remedies if required.
Speaking to reporters after the PAP conference, he reiterated the point that Singapore’s gas supplies are covered by commercial contracts, which are expected to be honoured.
On how long it will take to find out if the commercial contracts have been breached, Tan said he will leave it to Gas Supply to closely examine what remedies there are in the commercial contracts that they have entered into.
The firm, one of Singapore’s largest gas suppliers, is a wholly owned subsidiary of Temasek.
In his speech, PM Wong said Singapore has been preparing for such risks and has invested in liquefied natural gas terminals to import natural gas from different countries, without having to rely on pipelines.
“This gives us more options to manage any disruptions to our gas supply,” he added.
PM Wong said the country also has to look beyond natural gas and needs “cleaner sources of power to provide reliable electricity around the clock”.
That is why it is seriously studying the potential of nuclear energy, he said.
The Prime Minister acknowledged concerns over the safety of nuclear power, given Singapore’s small size and dense population.
“We take the concerns very seriously. Safety must come first. But we should not rule out an option simply because it is difficult or controversial,” he said.
“We must assess the risks and trade-offs carefully, engage Singaporeans, and eventually make the right decision to secure our energy future.”
Singapore will undergo an assessment by the International Atomic Energy Agency in 2027 to determine if the country is ready to make an informed decision on whether to deploy nuclear energy.
This will include an evaluation across 19 critical areas, such as nuclear safety, managing radioactive waste and emergency planning.
Outlining the Government’s priorities in his speech, PM Wong said some challenges are harder to tackle as they cross national borders.
He cited online scams and the haze, which has been affecting Singapore for a few weeks.
“We cannot solve these problems through our own efforts alone. We need cooperation from other countries. But that does not mean we stand by and do nothing,” PM Wong said.
“We are doing everything we can within our power to protect Singaporeans, strengthen our own response, and work with our partners to tackle these problems at source.” -- The Straits Times/ANN
