Indonesia Says Gas Export Reductions to Singapore Meet Contract Minimums

Indonesia's Energy and Mineral Resources Minister Bahlil Lahadalia said the recent reduction in natural gas supplies to Singapore complies with the minimum export volume required by the bilateral contract, which is about 91-92 billion British thermal units per day (BBTUD). The cut, amounting to roughly 31 BBTUD, reflects a shift of 15 BBTUD from Natuna and 16 BBTUD from Sumatra to meet electricity demand in Batam, Bintan and Sumatra, representing about 8% of Indonesia's total exports to Singapore.

Bahlin noted that the government will continue to assess its gas export policy, weighing contractual obligations against domestic power and industrial demand, as well as maintenance work at gas facilities. He added that Indonesia respects contracts and the rules governing cross-border trade, but also seeks to secure sufficient energy for its own consumption.

Singapore Prime Minister Lawrence Wong responded that the city-state expects all parties to honour commercial gas supply contracts and will take steps to protect its rights and interests. Singapore's Energy Market Authority indicated that the reduction would affect less than 2% of the country's daily gas demand, which is largely supplied via pipelines from Indonesia.

Both countries are also pursuing cross-border clean electricity initiatives, with Indonesia's state investment agency Danantara signing memorandums of understanding with Singapore firms to explore electricity offtake and transmission links.