SKK Migas: Singapore to stop gas imports via pipelines from RI

Upstream authority SKK Migas said Singapore buyers would stop gas imports from Indonesia via pipelines when the existing contracts expire.

"They would not seek extension of contracts as Singapore has already set up floating storage and regasification unit (FSRU) facility," acting Chairman of SKK Migas J. Widjonarko was quoted as saying, adding that with the operation of the FSRU, gas supply via pipelines to Singapore would be stopped, he said.

Currently, Indonesia exports gas to Singapore via pipelines of PT Trans Gas Indonesia from Natuna islands of Riau and South Sumatra across the Malacca strait. Exports include 300 mmscfd from the Koridor block in South Sumatra operated by ConocoPhillips and 100 mmscfd from Natuna Sea block in the Natuna islands operated by Premier Oil BV.

The gas buyers in Singapore are Sembawang Corporation and Gas Singapore Pvt Ltd (GSPL).

Elsewhere, Widjonarko said SKK Migas is ready to implement the government regulation on National Energy Policy (KEN), which among other things calls for stoppage of gas exports, when the necessary infrastructure facilities have been built to meet growing domestic demand.

A number of gas infrastructure projects are currently under construction including Gresik-Semarang-Cirebon-Jakarta and Arun-Belawan, Lampung, Central Java, Banten, and Cilacap gas pipelines.

Widjanarko said there are not many gas export contracts left other than export via pipeline contracts with Singapore and Malaysia. "There are only contracts with Chinas Fujian, Japan and South Korea which would expire this year," he said.

The House of Representatives has recently approved the regulation, which was drafted by the National Energy Council for the 2013-2050 period, which stipulates that national energy requirement is fulfilled by among others reducing or stopping exports such as gas and coal. (*)