Page 11 - AsianOil Week 44 2022

AsianOil SOUTHEAST ASIA AsianOil

Indonesia extends gas supply contract

with Singapore, but volumes to fall

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

Week 44 08•November•2022 www. NEWSBASE .com P11