Indonesia Continues to Export Gas to Singapore
- 2022-10-31
- Posted by: Widyadhana Mufida
- Category: Uncategorized
The Indonesian government will continue to export gas to Singapore. Minister of Energy and Mineral Resources Arifin Tasrif explained that previously the Indonesian government had planned to stop gas exports to Singapore by the end of 2023. However, Singapore requested that exports continue to meet the country’s gas needs amid energy crisis.
“Singapore feels this is necessary, so we have to help. We still have gas, we will extend it by five years,” said Arifin at the Ministry of Energy and Mineral Resources, Jakarta (28/10/2022).
Reported by Republika.co.id, Arifin explained that the extension of the gas export contract for five years had been considered from the gas stock condition that could be shipped. Other considerations come from the government’s priority on domestic gas demand and gas fields that are still in onstream preparation. Although it is not possible to explain in detail, the volume of gas exported will decrease compared to the previous contract.
“It’s not the same (volume), because domestic demand is increasing, then the production of the wells has also started to decrease. Domestic demand is increasing,” he explained.
Despite the reduced volume, Arifin admitted that Indonesia was still able to sell gas at a good price. The gas sale and purchase agreement is planned to be formalized at the end of this year.
“There must be administration left. It’s already finished for this year. But only until 2028. The price is quite good, “said Arifin.