Excess Supply; Indonesia Extends Gas Exports to Singapore Until 2028

TEMPO.CO, Jakarta - The Indonesian government plans to extend the gas sales contract to Singapore. Energy Minister Arifin Tasrif said that the current contract will expire in 2023, and the government plans to extend it until 2028.

"We haven't signed the deal yet as there are still administrative matters to take care of," Arifin told reporters at the Energy Ministry's Complex, Friday, October 28, 2022.

This contract extension, Arifin said, was carried out because Singapore is still in need of gas supplies from Indonesia. Meanwhile, Indonesia has more than enough supply.

"We are in oversupply. As there is a country in need, we must help," Arifin said.

In the contract extension, the volume of gas to be exported will be lower. Arifin did not say by how much, but explained that the export volume is reduced because the government takes into account the domestic gas situation, wherein the demand for gas is rising whilst the lifting volume from wells has begun to decline.

Throughout 2021, Indonesia exported liquefied natural gas (LNG) to several countries with a total sales volume of 459.55 million MMBTU. For the upstream LNG segment, China was the largest importer with a volume of 251.82 million MMBTU, followed by South Korea with 80.23 million MMBTU and Japan with 63.76 million MMBTU.

In the downstream sector of LNG, Indonesia exported a total of 110.98 million MMBTU with Japan, South Korea, and Taipei as the main destinations.

RIRI RAHAYU

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