Despite Indonesia cutting its natural gas exports to Singapore, the Republic has sufficient gas supply to meet demand, said Minister for Energy, Trade and Industry (Energy and Industry) Tan See Leng.
He also noted that our gas supply from Indonesia is under contract, which is expected to be honoured.
Source: Wikimedia Commons
Dr Tan was speaking during a media doorstop after the People’s Action Party (PAP) Conference on Sunday (25 Oct).
He said the reduction in Indonesian gas supplies amounted to 17 billion British thermal units (BBTUD) per day over a period of 18 days.
This is less than 2% of Singapore’s power sector gas demand per day.
Dr Tan noted that Singapore has sufficient replacement gas from other sources, including liquefied natural gas (LNG).
He pointed to “multiple layers of defence” in place, including diversifying our sources of natural gas from across the world.
Singapore also maintains a standby LNG facility, and Singapore GasCo — our central gas procurement entity — is ready to import more LNG whenever required.
Source: Tan See Leng on Facebook
Additionally, the Republic’s power generation companies must maintain sufficient diesel reserves to guard against a larger disruption of gas supplies, he added.
There are also plans to build a second LNG terminal and diversify our energy mix, which he will elaborate on during a Singapore Energy Lecture on Monday (26 Oct).
Dr Tan also maintained that Singapore’s gas importer, Gas Supply Pte Ltd (GSPL), has commercial contracts with its suppliers in Indonesia.
Thus, the contracts are expected to be honoured, he said, adding:
GSPL will engage its suppliers to determine if there is a breach of contract, and if so to pursue the commercial remedies provided in the contracts.
This echoed Prime Minister Lawrence Wong’s stance during a speech at the PAP Conference, when he said that Singapore expects all parties to “honour their commitments” under commercial contracts.
Source: Lawrence Wong on Facebook
But Mr Wong added that Singapore must “look beyond” natural gas to “cleaner sources of power” that can provide a reliable round-the-clock energy source.
“That is why we are studying seriously the potential of nuclear energy,” he noted.
For now, the Government will continue to ensure the reliability and resilience of Singapore’s energy supply, Dr Tan assured.
He noted that the Republic had “dealt seamlessly” without incident with such reductions in the past.
Thus, he urged Singaporeans to “keep calm and carry on”.
Also read: Indonesia cuts natural gas exports to S’pore by 9% after minister warns ‘disrespectful’ countries
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Featured image adapted from Tan See Leng on Facebook and Wikimedia Commons.