Singapore’s Ministry of Energy, Trade and Industry (METI) has responded to Indonesian suspicions that part of the LNG Singapore imports from Indonesia is resold to other countries. A METI spokesperson said more than 50 Singapore-based companies buy, market and trade LNG from around the world, including Indonesia, as reported by The Straits Times.
The spokesperson said Singapore-based trading companies make commercial decisions on the cargoes, but that LNG cargoes are generally shipped directly from the country of origin to the destination without physically passing through Singapore.
Pipeline gas stays home
Singapore also imports natural gas from Indonesia by pipeline, and the spokesperson said that gas is for domestic use and not for export.
The remarks come after Indonesia’s Coordinating Minister for Downstreaming and Energy Transition, Bahlil Lahadalia, said part of 148 LNG cargoes shipped from Indonesia to Singapore is traded and re-exported, while the rest is consumed domestically in Singapore.
Supply cut and diplomacy
Indonesia began reducing gas exports to Singapore the previous week to meet its own needs. Bahlil said post-reduction exports still meet contractual minimum supply.
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The Energy Market Authority estimated the reduction would not significantly affect Singapore’s energy needs. Foreign Minister Vivian Balakrishnan visited Indonesia from 27 to 29 October, and the two countries agreed to form a joint task force on haze disaster law enforcement and information exchange.
Head of the National Economic Council Luhut Binsar Pandjaitan asked why the two countries should fight over the matter. “Why should we fight with Singapore? There is no reason for that,” he said.
Source: Singapore's Ministry of Energy, Trade and Industry (METI)
