Indonesia defends reduced gas exports to Singapore, cites contracts and domestic needs
Indonesia says its cut of 31 million cubic feet of daily gas exports to Singapore complies with contractual minimums and is driven by maintenance and rising domestic demand.
Indonesia's energy minister Bahlil Lahadalia said the country reduced piped natural gas exports to Singapore by about 31 million standard cubic feet per day, roughly 8 percent of the volume supplied through pipelines from the Natuna Sea and Sumatra. He emphasized that the reduction remains within the minimum limits set by existing contracts and does not constitute a breach.
"Do not lecture Indonesia about its commitment to honouring and respecting contracts," Bahlil told reporters on Oct 26, adding that a 10 percent cut would have violated the agreements.
The cuts, announced by the upstream regulator SKK Migas, are attributed to maintenance shutdowns and higher domestic electricity demand in regions such as Batam, Bintan and Sumatra. While the minister did not confirm whether the reductions are permanent, he described the situation as fluid and mentioned the possibility of invoking force majeure, though no formal declaration has been made.
Singapore's Energy Market Authority reported that the reduction amounts to less than 2 percent of the city-state's daily gas demand. Prime Minister Lawrence Wong said Singapore expects all parties to honour contractual commitments, and Energy Minister Tan See Leng warned that resource nationalism could deter future energy investments.
Indonesia's gas supply contracts with Singapore run until the end of 2028, and negotiations continue over prospective electricity exports, with six Indonesian projects totaling 3 GW receiving conditional licences from Singapore. Bahlil indicated that electricity exports may not occur in the near term as Indonesia prioritises its own power needs, including data centres that require 20 GW of electricity.
The minister also noted that Indonesia is studying the feasibility of building a nuclear power plant in the Riau Islands or other locations such as Halmahera, Kalimantan and Sumatra, and that cooperation with foreign partners, including Russia, is being explored.