Mr Gerald Giam Yean Song asked the Minister for Trade and Industry (a) what has been the volume of pipeline natural gas (PNG) supply from Indonesia in each month since January 2021 and how does it compare to the volume in January 2022; (b) how many unplanned curtailments of PNG have occurred since August 2021; and (c) what steps are being taken to improve the reliability of Singapore’s gas supplies from Indonesia.
Mr Gan Kim Yong: Singapore imports Piped Natural Gas (PNG) from Malaysia and Indonesia via our PNG importers, Gas Supply Pte Ltd, Keppel Gas Pte Ltd, SembCorp Gas Pte Ltd, and Senoko Energy Pte Ltd. Gas supply contracts are negotiated on a commercial basis, and continued supply depends on, among other factors, availability of gas in the fields.
Singapore’s PNG supply from Indonesia comes from two regions, West Natuna and South Sumatra. The contracted volumes for the PNG contracts are revised annually. Because of depletion of these gas fields, the quantum is gradually reduced. The reduction in supply from Indonesia will be replaced by new PNG contracts or alternative sources of gas such as Liquefied Natural Gas (LNG). The quantum of decrease of PNG supplies is commercially sensitive, as it will affect the PNG importers’ negotiations for replacement fuel. Our LNG terminal has sufficient capacity to serve all gas demand in Singapore.
In addition to the planned depletions, there were also instances of unplanned curtailments to our PNG supply from Indonesia. Due to upstream production issues in the West Natuna gas fields that caused a temporary reduction in output, we experienced a prolonged unplanned curtailment between 6 September 2021 to 26 December 2021. Gas supply from West Natuna has since resumed at contractual levels. Occasional low gas landing pressure from South Sumatra also resulted in unplanned curtailments from October 2021 to December 2021.
EMA has been working closely with PNG importers and key gas users in Singapore to better manage the balance of gas supply and demand. These include: (a) ensuring that generation companies have the option to switch from gas to backup fuels. This improves the gas system stability and avoids the need for more extensive gas curtailments. Since putting this in place on 1 January 2022, there has been no further need for gas curtailments; and (b) imposing new Standards of Performance on PNG importers to ensure that they are proactive in ensuring reliable PNG supply.
The Memorandum of Understanding (MOU) on Energy Cooperation between Singapore and Indonesia was signed in January 2022, and is focused on low-carbon energy development, such as in the development and financing of low-carbon energy infrastructure, cross-border electricity trading, and the development of new and emerging technologies such as hydrogen and carbon capture, utilisation and storage (CCUS). The MOU will pave the way for commercial collaborations on these areas of interest and enable both countries to work together on energy transitions while supporting regional decarbonisation.
Ministry of Trade and Industry
14 February 2022