Singapore and Indonesia remain committed to upholding their gas supply agreements despite recent tensions arising from a reduction in Indonesia’s gas exports to Singapore. The cut, amounting to 31 billion British thermal units per day (BBTUD), was justified by Indonesia as a necessary measure to prioritize its domestic energy needs. The reduction, according to Indonesia, remains within the limits allowed by current agreements.
Singapore’s Foreign Minister, Vivian Balakrishnan, emphasized the importance of honoring contractual obligations, highlighting that these commitments are crucial for the credibility and competitiveness of both countries’ economies. Balakrishnan’s comments came during his visit to Jakarta, where he also urged stakeholders to consider both nations’ actions alongside their public statements.
Prior to the reduction, Indonesia was supplying approximately 409.55 BBTUD of natural gas to Singapore through pipelines, in addition to liquefied natural gas shipments. Singapore Prime Minister Lawrence Wong had earlier called for suppliers to adhere to their commitments, indicating that Singapore might seek remedies if any breach of contract is confirmed.
Indonesia’s Energy Minister, Bahlil Lahadalia, defended the decision, asserting that the agreement permits supply reductions of up to 92 BBTUD. He also dismissed Singapore’s criticism regarding Indonesia’s management of its contractual duties.
Balakrishnan confirmed that there have been communications at the highest levels between Singaporean and Indonesian leaders, including with President Prabowo Subianto, although specific details of these discussions were not disclosed.