Page 9 - AsiaElec Week 44 2022
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AsiaElec GAS GENERATION AsiaElec
Indonesia extends gas supply
contract with Singapore, but
volumes to fall
INDONESIA INDONESIA has agreed a new five-year gas The value of the contract was not revealed by
supply contract with Singapore, but the vol- the minister, although regional media reports
umes shipped by Pertamina to Singapore will said the volumes would likely be 30-40% lower
decline, Indonesian Minister for Energy and and the price paid by Singapore higher.
Mineral Resources Arifin Tasrif announced in According to local media reports, Singapore
late October. imports 2.27 trillion cubic feet (64.3bn cubic
Indonesia supplies gas to Singapore via the metres) of natural gas from the Indonesia island
Grissik-Batam-Singapore subsea pipeline under of South Sumatra. The current supply contract,
an existing contract. The new contract will be signed in 2001, and involving Indonesia’s state-
signed in November and come into force in run Pertamina and Singapore’s Gas Supply Ltd,
2023, and last until the start of 2028. Shipments was valued at $9bn. Gas Supply set up a sub-
began through the 468-km pipeline in 2003. sidiary, PowerGas, in 2000 for the purpose of
The two states have been in discussion over importing natural gas to Singapore, which relies
a new supply contract for some time. Tasrif said on imports of natural gas and LNG for 95% of its
that before renewing the agreement, the Indone- power generation needs.
sian government had to consider domestic sup- Singapore’s Sembcorp also purchases natural
ply and demand, but that supplies to Singapore gas via pipeline from Indonesia, with most of its
will continue, although at reduced volumes. supply coming from gas fields in West Natuna
Domestic demand is growing and Indone- under a contract that expires at the start of 2028.
sia is having to contend with wells that are fall- Singapore also imports gas by pipelines from
ing in output, the minister said during a news Malaysia.
conference.
Week 44 01•November•2022 www. NEWSBASE .com P9
