Supply of Natural Gas from Indonesia to Singapore

Debated in Parliament on 14 Feb 2022.

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Miss Rachel Ong asked if natural gas supply from Indonesia has resumed to normal and whether the new MOU will extend supplies beyond 2023, while Gerald Giam requested detailed monthly volumes, curtailment counts, and steps to improve reliability.
Minister Gan Kim Yong explained that Indonesia supplies gas via two regions with annually reduced volumes due to field depletion, but replacements are being sourced via new contracts or LNG, and the LNG terminal can meet demand.
He noted unplanned curtailments occurred from September to December 2021 due to production issues and low pressure, but supply has since resumed at contractual levels with measures to improve reliability.
The EMA is working with importers and users to enhance stability, including allowing fuel switching and imposing new performance standards, which have prevented curtailments since January 2022.
The 2022 Indonesia-Singapore MOU focuses on low-carbon energy collaboration like infrastructure, electricity trading, and emerging technologies, not on extending natural gas supply beyond 2023.

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Miss Rachel Ong

Miss Rachel Ong asked the Minister for Trade and Industry (a) whether the supply of natural gas from Indonesia to Singapore has resumed to normal levels; and (b) whether the recent Memorandum of Understanding on Energy Cooperation between Indonesia and Singapore will extend Indonesia's supply of natural gas to Singapore beyond 2023.

Summary written by AI (learn more)

Miss Rachel Ong asked if natural gas supply from Indonesia has resumed to normal and whether the new MOU will extend supplies beyond 2023, while Gerald Giam requested detailed monthly volumes, curtailment counts, and steps to improve reliability.
Minister Gan Kim Yong explained that Indonesia supplies gas via two regions with annually reduced volumes due to field depletion, but replacements are being sourced via new contracts or LNG, and the LNG terminal can meet demand.
He noted unplanned curtailments occurred from September to December 2021 due to production issues and low pressure, but supply has since resumed at contractual levels with measures to improve reliability.
The EMA is working with importers and users to enhance stability, including allowing fuel switching and imposing new performance standards, which have prevented curtailments since January 2022.
The 2022 Indonesia-Singapore MOU focuses on low-carbon energy collaboration like infrastructure, electricity trading, and emerging technologies, not on extending natural gas supply beyond 2023.

Questions identified by AI (learn more)

Supply of Natural Gas from Indonesia to Singapore

Debated in Parliament on 14 Feb 2022.

Summary written by AI (learn more)

Miss Rachel Ong asked if natural gas supply from Indonesia has resumed to normal and whether the new MOU will extend supplies beyond 2023, while Gerald Giam requested detailed monthly volumes, curtailment counts, and steps to improve reliability.
Minister Gan Kim Yong explained that Indonesia supplies gas via two regions with annually reduced volumes due to field depletion, but replacements are being sourced via new contracts or LNG, and the LNG terminal can meet demand.
He noted unplanned curtailments occurred from September to December 2021 due to production issues and low pressure, but supply has since resumed at contractual levels with measures to improve reliability.
The EMA is working with importers and users to enhance stability, including allowing fuel switching and imposing new performance standards, which have prevented curtailments since January 2022.
The 2022 Indonesia-Singapore MOU focuses on low-carbon energy collaboration like infrastructure, electricity trading, and emerging technologies, not on extending natural gas supply beyond 2023.

Questions identified by AI (learn more)

Full Transcript

Miss Rachel Ong

Summary written by AI (learn more)

Miss Rachel Ong asked if natural gas supply from Indonesia has resumed to normal and whether the new MOU will extend supplies beyond 2023, while Gerald Giam requested detailed monthly volumes, curtailment counts, and steps to improve reliability.
Minister Gan Kim Yong explained that Indonesia supplies gas via two regions with annually reduced volumes due to field depletion, but replacements are being sourced via new contracts or LNG, and the LNG terminal can meet demand.
He noted unplanned curtailments occurred from September to December 2021 due to production issues and low pressure, but supply has since resumed at contractual levels with measures to improve reliability.
The EMA is working with importers and users to enhance stability, including allowing fuel switching and imposing new performance standards, which have prevented curtailments since January 2022.
The 2022 Indonesia-Singapore MOU focuses on low-carbon energy collaboration like infrastructure, electricity trading, and emerging technologies, not on extending natural gas supply beyond 2023.

Questions identified by AI (learn more)

Gan Kim Yong

Singapore imports 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 and 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.

The Energy Market Authority (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 in these areas of interest and enable both countries to work together on energy transitions while supporting regional decarbonisation.

Supply of Natural Gas from Indonesia to Singapore

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Questions Identified

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Miss Rachel Ong

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Supply of Natural Gas from Indonesia to Singapore

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Questions Identified

Full Transcript

Miss Rachel Ong

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Questions Identified

Gerald Giam Yean Song

Gan Kim Yong