Jakarta (VNA) – The Indonesian Energy and Mineral Resources Ministry has decided to extend its contract to supply gas to Singapore for five years from the initial expiry date of 2023.

Minister of Energy and Mineral Resources Arifin Tasrif told reporters that having considered domestic supply and demand, the government will continue supplying gas to Singapore until 2028.

He noted the volume to be exported under the extended contract will be lower than before to prioritise domestic demand.

Dwi Soetjipto, chairperson of Indonesia’s upstream oil and gas regulator SKK Migas, said the supply volume may be lowered by 30 – 40%, as local industries such as fertiliser producers are seeking more gas.

Indonesia is expected to get better pricing for the new contract, which will be signed in November.

In 2020, the Indonesian ministry announced a plan to stop gas exports to Singapore in 2023 to raise added value for the archipelago nation’s natural gas and reduce trade deficit./.