Indonesia Cuts Daily Gas Exports to Singapore to Prioritise Domestic Power Needs
Indonesia reduced natural gas shipments to Singapore by about 31 million cubic feet per day, redirecting the supply to meet its own electricity generation requirements.
Indonesia began scaling back natural gas exports to Singapore on Oct. 24, diverting roughly 31 million standard cubic feet of gas each day to support domestic electricity generation, the upstream oil and gas regulator SKK Migas said in response to media inquiries. The redirected volume includes about 15 million cubic feet from the Natuna field, sent to PLN Batam via the WNTS–Pulau Pemping–Batam pipeline, and 16 million cubic feet from Sumatra, routed through the TGI pipeline to supply power to Batam, Bintan and Sumatra.
SKK Migas said the action aims to "safeguard the reliability of domestic gas supplies for electricity generation" and cited Article 8, Paragraph 1 of Indonesia’s Oil and Gas Law as the legal basis for prioritising domestic use. The regulator indicated it will monitor the situation daily.
Singapore relies on natural gas for about 95% of its electricity generation. The Energy Market Authority (EMA) estimated the reduction represents less than 2% of Singapore’s total daily gas demand, amounting to roughly 17 billion British thermal units over an 18-day period. EMA said contingency measures are in place and that Singapore GasCo is prepared to increase LNG imports if needed.
The export cut follows recent statements by Indonesia’s Coordinating Minister for Downstreaming and Energy Transition, Bahlil Lahadalia, who warned that the country could reassess energy exports to nations it perceives as not respecting Indonesia’s interests. Earlier, President Prabowo Subianto called for safeguarding national natural resources. About 30% of Indonesia’s natural gas production is exported, while the remaining 70% serves domestic consumption, according to state news agency Antara.
Singapore’s Deputy Prime Minister Gan Kim Yong previously noted that rising Indonesian gas demand could affect export volumes, and highlighted the need for diversified supply sources. Singapore is constructing a second LNG terminal slated for completion by the decade’s end to broaden its import options.
Additional reporting by Kiki Siregar.