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Singapore · Energy

Singapore PM Wong: Indonesia gas cut must honour contracts as importer moves to defend rights

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Lawrence Wong told the PAP convention on Oct 25 that gas supplies are covered by commercial contracts and all parties should honour them, as Singapore leans on LNG terminals and studies nuclear power.

Why it matters

About 95% of Singapore's electricity is generated from natural gas, and Indonesian pipeline gas is a major source. The prime minister's first public response shifts the focus from how big the cut is to whether contracts will be honoured, and puts the nuclear option back on the table.

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Speaking at the People's Action Party convention on Oct 25, Lawrence Wong said Indonesia had announced the cut to its gas exports to Singapore the day before, and that the supplies are covered by commercial contracts: “We expect all parties to honour their commitments, and Singapore's gas importer will take the necessary steps to protect its rights and interests under these contracts.”

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Indonesia's upstream oil and gas regulator SKK Migas said the move diverts more gas from Natuna and Sumatra to domestic electricity needs. Singapore's Energy Market Authority assessed the reduction at less than 2% of the city-state's total daily gas demand, with domestic energy supply still adequate.

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Wong said Singapore had long prepared for such risks, including investing in liquefied natural gas terminals to import gas from many countries rather than relying on pipelines alone. He added that Singapore must look beyond natural gas for reliable round-the-clock clean energy, and that authorities are studying nuclear power: safety must come first in a small, densely populated country, but an option should not be ruled out simply because it is difficult or controversial — risks and trade-offs must be assessed carefully and Singaporeans engaged before the right decision for energy security is made.

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