SINGAPORE: Indonesia’s move to cut gas exports to Singapore is unlikely to affect electricity prices significantly in the short term, as the reduction makes up less than 2% of the country’s needs, according to Energy, Trade and Industry Minister Tan See Leng.
Singapore should instead be looking at fluctuations in global prices, he told reporters in an interview on Oct 25 after the PAP’s biennial conference.
This is because the unit price of gas is usually pegged to the movement of some of the key global indices, he noted.
Indonesia had said it would cut natural gas exports to Singapore by 31 billion British thermal units (bbtud) per day 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.
Tan gave the reassurance that Singapore has sufficient gas supply to meet its demand.
He said the Republic’s central procurer and supplier of natural gas is ready to import more liquefied natural gas (LNG), and the country maintains a standby LNG facility.
The Energy Market Authority said 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.
It relies on natural gas for around 95% of its electricity needs. — The Straits Times/ANN
