The Workers’ Party (WP) has backed the importance of honouring international commercial contracts after Indonesia reduced natural gas exports to Singapore.
In a statement on 25 October, the party said it regretted Indonesia’s decision “if due to recent unconnected events”. It described upholding contracts, particularly those covering essential utilities, as an issue of national importance.
Its position aligns with Prime Minister Lawrence Wong’s call earlier that day for parties to fulfil their gas supply commitments.
WP Raises Concerns About Unrelated Issues Being Linked
WP said comments by current and former Indonesian officials about the haze had become mixed up in some quarters with allegations involving Singapore’s sovereign wealth funds and the gas export cuts.
The party said the current reduction appeared tolerable, but highlighted the importance of diversifying Singapore’s energy supplies amid growing international uncertainty.
It also said its MPs had submitted haze-related questions for the next parliamentary sitting and would ask supplementary questions where appropriate.
Singapore Says Replacement Gas Is Available
Indonesia began reducing gas exports to Singapore on 24 October. Its upstream oil and gas regulator, SKK Migas, told CNA that supplies were being redirected to meet domestic electricity needs.
Speaking at the PAP convention on 25 October, PM Wong said Singapore expected parties to honour their commercial contracts. Singapore’s gas importer would take the necessary steps to protect its contractual rights and interests.
Minister for Energy, Trade and Industry (Energy and Industry) Tan See Leng separately said Gas Supply Pte Ltd would engage its Indonesian suppliers to establish whether a contract had been breached. If so, it would pursue remedies provided for in the contracts.
Dr Tan put the reduction at 17 billion British thermal units per day over 18 days, representing less than 2% of Singapore’s daily gas demand for electricity generation.
He assured Singaporeans that sufficient replacement supplies were available, including liquefied natural gas, or LNG.
Singapore’s safeguards include a standby LNG facility and requirements for power generation companies to hold sufficient diesel reserves against larger gas supply disruptions.
