Piped natural gas imported from Indonesia is used in Singapore and is not exported, the Ministry of Energy, Trade and Industry (METI) clarified on 30 October.
The clarification followed Indonesian minister Bahlil Lahadalia’s claim that some liquefied natural gas (LNG) supplied to Singapore was being resold to other countries.
His remarks concerned LNG cargoes transported by sea. These are separate from the piped natural gas affected by Indonesia’s recent supply cuts.
LNG Trades Usually Bypass Singapore Physically
“Piped natural gas imported from Indonesia is for domestic use, and not for export,” a METI spokesperson said.
The ministry said Singapore serves as a global trading centre for LNG, with over 50 firms here dealing in cargoes from many countries, Indonesia among them. Their biggest supply markets are the United States, Australia and Malaysia.
“While Singapore-based traders make the commercial decisions relating to the cargo, the actual LNG cargo usually moves from source to destination country directly and does not physically pass through Singapore,” a METI spokesman said. LNG trading and re-export transactions are subject to the relevant supply agreements.
LNG is natural gas cooled into liquid form for storage and transport. This allows it to be shipped, rather than delivered through an international pipeline.
Indonesian Minister Cited 148 LNG Cargoes
Speaking to reporters in Jakarta on 29 October, Bahlil, Indonesia’s Energy and Mineral Resources Minister, said Indonesia had shipped 148 LNG cargoes to Singapore, state news agency Antara reported.
He said he believed some of the LNG was subsequently traded to other countries, while some met Singapore’s domestic needs.
Bahlil also defended the reduction in piped gas supplies, saying deliveries remained within the minimum levels allowed under existing contracts.
Singapore Says Replacement Gas Is Available
Indonesia began cutting piped gas exports to Singapore on 24 October, diverting supplies to domestic energy needs.
In remarks on 25 October, Minister Tan See Leng said the reduction amounted to 17 billion British thermal units per day over 18 days. British thermal units measure energy. He put the reduction at less than 2 per cent of Singapore’s daily gas demand for power generation.
Tan said Singapore had enough gas to meet demand, including replacement supplies from other sources such as LNG.
He also said gas importer Gas Supply Pte Ltd would engage its Indonesian suppliers to determine whether the cuts breached their contracts and, if so, pursue the remedies provided under those agreements.
