Indonesia to stop gas supply to Singapore in 2023

Indonesia to stop gas supply to Singapore in 2023
Illustration of pipelines. (Photo by Crystal Kwok on Unsplash)

Jakarta (Indonesia Window) – The Indonesian government will stop the supply of gas to Singapore to meet domestic gas needs.

In a statement from the Indonesian Ministry of Energy and Mineral Resources quoted by Indonesia Window here on Friday, the Head of the Regulatory Agency for Upstream Oil and Gas Business (BPH Migas), Fansurullah Asa said the government was looking for a domestic market to shift the supply of the exported gas.

The gas supplied to Singapore is planned to be channeled through the Dumai Duri pipelines, then flowed to the industrial estates in Sumatra.

The price of gas is set at US$6 per MMBTU (Million British Thermal Units) in accordance with the Presidential Regulation Number 40 of 2016 on the Determination of Natural Gas Prices.

The plan is expected to create added value and reduce the trade balance deficit as oil fuel will be gradually replaced by  gas.

So far, the gas supply to Singapore comes from the Corridor Block managed by ConocoPhillips as much as 300 million standard cubic feet per day (MMSCFD).

To support the gas supply to Sumatra’s industrial areas, the Indonesian government has prepared some construction projects to build transmission pipelines, one of which is Dumai – Seimangke Special Economic Zone Seimangke system, and establish Distribution Network Area (WJD).

Some business entities have proposes 193 areas.

Reporting by Indonesia Window

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