Gas importer to protect rights amidst Indonesian cuts, says PM Wong

Wong expects all parties to honour existing commercial agreements. 

Singapore's gas importer will take steps to protect its contractual rights following Indonesia's reduction of natural gas exports, Prime Minister Lawrence Wong said on 25 October.

“We expect all parties to honour their commitments,” Wong said at the People's Action Party conference.

He said Singapore has been preparing for potential supply disruptions by investing in liquefied natural gas terminals, allowing it to import gas from different countries without relying solely on pipelines.

“This gives us more options to manage any disruptions to our gas supply,” Wong added.

Separately, Minister Tan See Leng said Gas Supply Pte Ltd would engage its Indonesian suppliers to determine whether the reduction constituted a breach of contract and pursue available commercial remedies if necessary.

The reduction amounts to 17 billion British thermal units per day over 18 days, representing less than 2% of the country’s daily power-sector gas demand.

Meanwhile, Wong said Singapore is also studying the potential of nuclear energy to provide cleaner and reliable electricity, particularly as growing computing power requirements increase energy demand.

“Understandably, there are concerns about the safety of nuclear power in a small and densely populated country like Singapore. We take the concerns very seriously,” he added.

Wong said chief executives of major semiconductor companies had expressed interest in expanding their local operations.

He added that founders of international technology startups also view Singapore as a base for investment and business growth.