Singapore to stop gas imports via pipelines from Indonesia

"They would not seek extension of contracts as Singapore already has the floating storage and regasification unit (FSRU) facility," acting chief of the SKK Migas J Widjonarko said.
Jakarta (ANTARA News) - The Upstream Oil and Gas Regulator (SKK Migas) said Singapore buyers would stop importing gas via pipelines from Indonesia after the import contracts expire.

"They would not seek extension of contracts as Singapore already has the floating storage and regasification unit (FSRU) facility," acting chief of the SKK Migas J Widjonarko said.

With the FSRU facility gas supply via pipelines to Singapore would be stopped, Widjonarko said here on Wednesday before a meeting with the lawmakers.

Currently Indonesia exports gas to Singapore via pipelines of PT Trans Gas Indonesia from Natuna islands of Riau and South Sumatra across the Malacca strait.

Exports include 300 MMSFD from the Koridor block in South Sumatra operated by ConocoPhillips and 100 MMSFD from Natuna Sea block in the Natuna islands operated by Premier Oil BV.

The gas buyers in Singapore are Sembawang Corporation and Gas Singapore Pvt Ltd (GSPL).

Widjonarko said SKK Migas is ready to implement the government regulation on National Energy Policy (KEN) that calls for stoppage of gas exports.

"We are ready with the plan to build gas infrastructure. When the infrastructure has been available, gas export is no longer needed," he said.

Currently a number of gas infrastructure projects are under construction such as Gresik-Semarang-Cirebon-Jakarta and Arun-Belawan, Lampung, Central Java, Banten, and Cilacap gas pipelines.

Widjanarko said there are not many gas export contracts left other than export via pipeline contracts with Singapore and Malaysia.

"There are only ones with Chinas Fujian, Japan and South Korea which would expire this year," he said.

Commercial deputy of SKK Migas Widhyawan Prawiraatmadja said gas exports could be stopped under "interruptable" contract.

"When the domestic buyers need the gas the exports could be stopped," he said.

The regulation on National Energy Policy requires the government to stop exports of gas and coal to guarantee domestic supply.

The House of Representatives has approved the regulation drafted by the National Energy Council for the 2013-2050 period.

The regulation says national energy requirement is fulfilled such as by cutting or stopping exports.

There has been calls for cutting or stopping exports of gas and coal to meet growing domestic demand for alternative energy amid soaring oil prices.(*)

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