Indonesia cut its natural gas exports to Singapore by about 9% on Saturday (24 Oct), saying it would be diverted for its domestic needs, reported Reuters.
However, it comes shortly after an Indonesian minister warned that the country may stop exporting energy to countries that “disrespect” it.
Source: Wikimedia Commons
The quantum of gas exports to Singapore that were cut amounts to 31 billion British thermal units per day (BBTUD), according to CNBC Indonesia.
This was announced by Mr Djoko Siswanto, head of Indonesia’s upstream oil and gas regulator SKK Migas, on Saturday at an event in Jakarta.
Source: CNBC Indonesia on Facebook
The cut in gas shipments was carried out from two main supply points in the Natuna and Sumatra regions through pipelines that are directly connected to Singapore.
When asked whether other countries besides Singapore would be affected, he replied that gas exported to other countries was not cut, as the pipeline only connects to Singapore.
The cuts amount to about 9% of Indonesia’s gas exports to Singapore that are delivered via pipeline, according to Reuters.
Mr Djoko said the gas supplies originally destined for Singapore are being directed for domestic use, serving electricity needs in Batam, Bintan and Sumatra.
This is “in order to safeguard the reliability of domestic gas supplies for electricity generation”, he added.
On Thursday (22 Oct), Indonesia’s Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said he would “evaluate” the country’s energy export agreements with countries that failed to show mutual respect.
Source: Bahlil Lahadalia on Facebook
Speaking at an event marking the commissioning of gas production facilities in Jakarta, he also warned that he would “not hesitate to consider stopping exports to countries that do not respect Indonesia”.
He did not mention any country by name in his speech.
In response to queries from The Straits Times (ST), the Energy Market Authority (EMA) said on Saturday night that Singapore has sufficient energy supplies to meet national demands.
The total reduction of natural gas from Indonesia amounted to 17 BBTUD over 18 days — less than 2% of Singapore’s total daily gas demand of more than 1,000 BBTUD.
EMA noted that contingency plans are in place to deal with reductions, for example when it saw gas supply reductions of up to 100 BBTUD in recent months, the shortfall was replaced with other gas sources without incident.
Source: Wikimedia Commons
EMA also understands that its importers will pursue “all relevant recourse” in their contracts for the gas disruption.
The moves took place after a Singapore’s National Environment Agency (NEA) sent legal notices to 10 companies in Indonesia over fires believed to be on their lands that led to haze blowing over to Singapore.
Politicians in Singapore, including Prime Minister Lawrence Wong, have also pledged to go after the companies responsible for haze-causing fires.
This year’s haze season has been the worst since 2015, with the 24-hour Pollutant Standards Index (PSI) hitting a peak of 230 on 18 Oct, and the hourly PM2.5 concentration reaching 288 µg/m³ on 14 Oct.
Also read: Indonesia holds off on taking aid from S’pore & M’sia, confident in managing wildfires & haze
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Featured image adapted from Wikimedia Commons.