Indonesia trims gas exports to Singapore

Indonesia has begun reducing natural gas exports to Singapore, cutting pipeline deliveries by about 31 million standard cubic feet per day from Oct 24. The reduction, about 31 million scfd, affects gas supplied through pipelines from Natuna and Sumatra that connect directly to Singapore.

The Indonesian upstream oil and gas regulator SKK Migas has stated that gas volumes initially bound for Singapore are being redirected to support domestic energy generation. About 15 million standard cubic feet per day from Natuna is being sent to a state utility unit in Batam, while 16 million standard cubic feet per day from Sumatra is being used to support electricity needs in Batam, Bintan and Sumatra. SKK Migas said the cuts do not affect any other country because the relevant export pipelines link only to Singapore.

Singapore’s leadership has stressed both contractual expectations and energy security preparations in response to the cuts. Prime Minister Lawrence Wong said that Singapore expects all parties to honour their commitments and that the city-state’s gas importer will take the necessary steps to protect its rights and interests under existing contracts. He added that Singapore has been preparing for such risks by investing in liquefied natural gas terminals that allow it to import natural gas from different countries without relying solely on pipelines.

An Energy Market Authority spokesperson reiterated that the reduction would last 18 days, confirming that the impact is small relative to overall daily gas demand. The EMA stated that contingency plans are in place to handle such reductions and that Singapore GasCo is ready to import more liquefied natural gas whenever required. Authorities have also highlighted requirements for power generation companies to maintain sufficient diesel reserves as a safeguard against larger disruptions in gas supply.

Singapore Gas Supply Pte, which imports gas from Indonesia, has reported that deliveries of gas to its customers have been affected by the temporary reduction in upstream supply. The company has said it is engaging with its Indonesian supplier and with customers to manage the situation. Another importer of Indonesian gas, Sembcorp Gas Pte, was not immediately available for comment outside regular business hours.

Manpower Minister Tan See Leng has said that the current cut in Indonesian gas supply is unlikely to affect electricity prices in Singapore. He pointed to multiple layers of defence in Singapore’s energy system, including diversified natural gas sources, a standby liquefied natural gas facility and the ability of Singapore GasCo to ramp up LNG imports. These measures, together with mandated diesel reserves at power generation companies, are intended to mitigate the impact of short-term pipeline gas disruptions on Singapore’s power system.

Indonesian officials have framed the export reductions as part of broader efforts to prioritise domestic energy needs and strengthen national energy security. Energy and Mineral Resources Minister Bahlil Lahadalia said that the government could consider not extending gas exports to neighbouring countries if domestic demand requires priority, and later stated that Indonesia would optimise natural gas production for domestic use, particularly in the petrochemical industry. He also indicated that any export restrictions would apply to all countries, though the current pipeline cuts are directed at volumes supplied to Singapore.