Jakarta. Singaporean Prime Minister Lawrence Wong recently called on suppliers to honor their commercial contracts after Indonesia decided to cut its natural gas exports.

Indonesia has decided to slash the pipeline gas exports by about 31 million British thermal units per day (BBTUD), starting Saturday, to prioritize domestic needs. The city-state heavily relies on Indonesian natural gas to generate its electricity. The recent disruptions are feared to further strain ties amid a bad regional haze coming from Kalimantan forest fires.

At the ruling People’s Action Party convention on Sunday, Wong responded to Jakarta’s energy moves.

“Yesterday, Indonesia announced cuts to its gas exports to Singapore. Now, the gas supplies are covered by commercial contracts. We expect all parties to honor their commitments,” Wong told the live-broadcast conference.

Singapore’s gas importer will take the “necessary steps” to protect its rights and interests under these contracts, according to Wong.

The politician said that the country had been preparing for such risks, citing the investment in liquefied natural gas (LNG) terminals to be less dependent on pipeline networks. These terminals have enabled Singapore to tap other sources. Wong also pitched nuclear power as one of the solutions to provide reliable electricity around the clock. 

Singapore’s news outlet Straits Times, quoting the Energy Market Authority (EMA), wrote that the supply cut only makes up less than 2% of the national demand. Business Times revealed the local importer Gas Supply’s plans to pursue remedies if it is found that Jakarta has breached any part of the contract. 

Chief Energy Transition Minister Bahlil Lahadalia told the press last week that Indonesia is now in a “survival mode”, shortly after a closed-door cabinet meeting with President Prabowo Subianto.

“If other countries have a different view of us, they should be careful,” Bahlil said.

“I may consider not extending gas export contracts with our neighboring country for us to survive.”

Indonesia and Malaysia supply roughly 40% of Singapore’s natural gas needs via pipelines. The remaining portion comes from Australia, Qatar, among others.

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