Indonesia cuts back gas exports to Singapore to safeguard domestic electricity supplies

Nick Karean
|
2 m read
Indonesia cuts back gas exports to Singapore to safeguard domestic electricity supplies
Photo: Nick Karean/AI illustration

Indonesia warns it may halt energy exports to countries that disrespect the country

SINGAPORE/INDONESIA: Indonesia began cutting natural gas exports to Singapore on Oct 24, redirecting supplies to meet domestic electricity needs. The change affects 31 million standard cubic feet of gas daily from Natuna and Sumatra.

Singapore’s Energy Market Authority (EMA) said the reduction totals 17 billion British thermal units daily over 18 days. This represents less than 2% of Singapore’s daily gas demand, which exceeds 1,000 billion British thermal units.

Citing Indonesia’s upstream oil and gas regulator, SKK Migas, the regulator said it would monitor the situation daily, Channel NewsAsia (CNA) reported (Oct 24).

Gas from Natuna is being redirected to PLN Batam through the WNTS–Pulau Pemping–Batam pipeline. Supplies from Sumatra are being channelled through the TGI pipeline to serve Batam, Bintan, and Sumatra.

SKK Migas cited Indonesia’s oil and gas law as the basis for prioritising domestic use. Its response didn’t link the export reduction to recent warnings by Indonesian ministers about reviewing energy exports.

Natural gas generates about 95% of Singapore’s electricity, making supply security a key concern. However, Singapore also receives gas through pipelines from Malaysia, and imports liquefied natural gas (LNG) from global suppliers.

In 2025, piped gas accounted for 43% of Singapore’s total gas imports, while LNG made up the remaining 57%.

EMA said contingency plans were ready to manage supply reductions. Singapore GasCo was also operationally prepared to import additional LNG when needed.

Indonesia’s latest follows warnings that domestic energy needs could take priority over exports. Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said on Oct 22 that Indonesia could consider stopping exports to countries that failed to respect it.

Singapore is also preparing for longer-term supply needs. Deputy Prime Minister Gan Kim Yong said last year that existing gas import contracts with Indonesia were due to expire at the end of 2028.

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Singapore is building a second LNG terminal, expected to operate by the end of the decade. Diversifying supplies and maintaining backup options will matter as regional energy needs change.

For now, the reported reduction is limited in scale and duration. Still, Singapore should keep expanding its supply options and monitoring regional developments. Reliable electricity depends on planning ahead, not waiting for the next disruption.


Read more: Indonesian minister warns he ‘will not hesitate to stop energy exports to countries that disrespect Indonesia’