Indonesia cut 31 million standard cubic feet of gas per day (mmscfd) from its pipeline natural gas exports to Singapore starting on Saturday to divert supply to the domestic power sector, upstream oil and gas regulator SKK Migas said.
Indonesia cut 15 mmscfd from its supply to Singapore from Natuna and another 16 mmscfd of gas from Sumatra, SKK Migas chairman Djoko Siswanto told Reuters on Saturday.
Singapore's Energy Market Authority said the total reduction amounts to 17 bbtud over a period of 18 days, which is "less than 2% of our total daily gas demand of more than 1,000 bbtud".
"EMA understands that our importers will pursue all relevant recourse in their contracts for the gas supply disruption," the Energy Market Authority spokesperson said.
Singapore's Energy Market Authority said state gas buyer GasCo is ready to import more LNG at any time and that the country has sufficient energy supplies for national demand.
Most of Indonesia’s gas exports to Singapore are delivered via pipeline, and the cuts would account for around 9% of that supply.
“In order to safeguard the reliability of domestic gas supplies for electricity generation, effective today, gas supplies previously destined for Singapore are being redirected for domestic use,” said Djoko.
The gas is being redirected to meet electricity needs in Batam, Bintan and Sumatra, he said.
Batam and several cities in Indonesia's Riau Islands province suffered a blackout that lasted 16 hours earlier this month.
Indonesia energy minister Bahlil Lahadalia earlier this week said he would prioritise natural resources use for domestic needs, and review contracts to maintain energy security.
Singapore generates up to 95% of its electricity from natural gas.
(Reuters - Reporting by Bernadette Christina in Jakarta and Jun Yuan Yong in Singapore; Editing by Tom Hogue and Ros Russell)
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