Impact of Indonesia's Recalibration of LNG Trade on Singapore's Energy Security
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the impact of Indonesia’s recalibrated liquefied natural gas trade and domestic prioritization on Singapore’s energy security and diversification efforts. Mr Saktiandi Supaat inquired about supply implications, to which Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong responded that Singapore maintains diverse sources, with no single country providing over 30% of current gas imports. The Minister noted that a second LNG terminal will be operational by the decade's end to bolster capacity as Indonesian pipeline contracts expire in 2028. Beyond gas, Singapore aims to install two Gigawatt-peak of solar capacity by 2030 and import six Gigawatts of low-carbon electricity by 2035. Furthermore, the government is accelerating feasibility studies on low-carbon alternatives like geothermal and nuclear energy to ensure long-term energy resilience.
Transcript
81 Mr Saktiandi Supaat asked the Deputy Prime Minister and Minister for Trade and Industry in view of the potential energy supply implications from Indonesia's recalibration of the liquefied natural gas (LNG) trade, including its shift towards imports from the US and prioritisation for domestic use (a) what is the impact on Singapore; and (b) and what steps will be taken to diversify Singapore's energy sources and enhance long-term energy security.
Mr Gan Kim Yong: Indonesia is one of the main sources of natural gas imports for Singapore. Our current contracts to import gas from Indonesia expire in end-2028.
Currently, Indonesia supplies natural gas to Singapore primarily through pipelines. But Indonesia's domestic gas demand is also growing. This may affect how much gas Indonesia is able to continue to export to other countries. Indonesia may also buy Liquefied Natural Gas (LNG) from the United States, but this will not have an impact on Singapore as we are not a gas exporter.
For Singapore, it is critical to ensure the sufficiency and diversity of our natural gas supplies. To this end, we have built an LNG terminal, which started operations in 2013. The LNG terminal allows us to import LNG from various suppliers around the world. In fact, LNG now accounts for close to 60% of our total natural gas supplies. In 2024, no single country accounted for more than 30% of our gas imports. To ensure we have sufficient natural gas for future needs, we are building a second LNG terminal to increase our LNG import capacity. This terminal will be operational by the end of the decade.
At the same time, we will continue to diversify our energy mix. First, we are on track to install at least two Gigawatt-peak of solar capacity by 2030. Second, we aim to import around six Gigawatt of low-carbon electricity by 2035, or one-third of Singapore's projected energy demand then. Third, we are accelerating our efforts to study the feasibility of low-carbon alternatives, such as geothermal, low-carbon ammonia and nuclear energy.