2023, Indonesia Stops Gas Supply to Singapore

Thursday, 6 February 2020 - Dibaca 4808 kali




NUMBER: 060.Pers/04/SJI/2020

Date: 6 February 2020

2023, Indonesia Stops Gas Supply to Singapore

The government confirms it will stop pipeline gas to Singapore. The termination will start in three years in order to meet the domestic demand for gas.

Head of Downstream Oil and Gas Regulating Agency (BPH Migas), Fansurullah Asa, asserted the government was currently looking for domestic markets to absorb the diverted gas supplies. "Because in 2023 gas exports to Singapore are stopped, the gas must be delivered somewhere (to which market)," said Head of BPH, whose nickname is Ifan, at BPH Migas building in Jakarta, Wednesday (5/2).

The decision confirms the previous statement of Minister of EMR, Arifin Tasrif, at a work meeting with Commission VII of House of Representatives. "Gas is in abundance in Sumatra, supplies to Singapore which will end in 2023 will be diverted to domestic markets," said Arifin last November.

The plan is to channel the gas formerly supplied to Singapore to the Duri Dumai pipelines, and later send it to industrial estates in Sumatra. The gas to be sold to the industrial estates is priced at USD6 per MMBTU, according to the rules in Presidential Regulation Number 40 of 2016 on Pricing of Natural Gas.

This plan, added Ifan, is expected to create added value and to reduce trade balance deficit due to the conversion from oil fuels to gas.

To date, gas supplies to Singapore come from Corridor Block managed by ConocoPhillips which amount to 300 Million Standard Cubic Feet per Day (MMSCFD). To support the transfer of gas supplies, the government has prepared the infrastructure by developing transmission pipelines such as Dumai-KEK Seimangke and Distribution Network Area (WJD). "There are 193 WJD's proposed by Business Entities," concluded Ifan. (IY)

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