Indonesia last month began diverting 31 million standard cubic feet of gas a day, comprising 15 million from Natuna and 16 million from Sumatra.
Gas from Natuna was diverted to PLN Batam through the WNTS–Pulau Pemping–Batam pipeline. Meanwhile, supplies from Sumatra were being redirected through the TGI pipeline to meet electricity needs in Batam, Bintan and Sumatra.
Natural gas is used to generate about 95 per cent of Singapore’s electricity.
Bahlil has said that the gas export cuts to Singapore fall within the minimum contractual limits of around 91 to 92 per cent of exports.
“We have only reduced it by about 8 per cent. We would only be in breach of contract if we were to cut by 10 per cent,” said Bahlil.
“This situation arose partly due to maintenance requirements, but also because of domestic demand. And that is just for the gas – not even accounting for the LNG (liquefied natural gas) we supply,” he added.
In response to queries from CNA, a spokesperson for Singapore’s Ministry of Energy, Trade and Industry (METI) reiterated minister Tan See Leng’s comments on Oct 25 that Gas Supply Private Limited (GSPL) would engage its suppliers to determine whether the reduction would amount to a breach of contract.
GSPL is a wholly-owned subsidiary of Temasek and Singapore’s gas importer.
“We welcome the clarification that Indonesian suppliers will honour their contracts,” said the ministry spokesperson.
Bahlil had previously also suggested that LNG shipped from Indonesia to Singapore had subsequently been resold to other countries rather than used for domestic consumption.
The Jakarta Globe had reported that Bahlil did not provide evidence identifying specific shipments that had been re-exported.
Singapore’s METI later clarified that LNG traded by Singapore-based companies is usually shipped directly from its source country to its destination without physically passing through Singapore.
