Indonesia has started cutting natural gas exports to Singapore, redirecting 31 million standard cubic feet per day to meet domestic electricity needs. The reduction includes 15 million cubic feet from Natuna and 16 million from Sumatra, with supplies being rerouted through key pipelines to support electricity generation in Batam, Bintan, and Sumatra. SKK Migas, Indonesia’s upstream oil and gas regulator, cited the need to 'safeguard the reliability of domestic gas supplies for electricity generation' as the reason behind the move, referencing Article 8 of Indonesia’s Oil and Gas Law.
The decision comes days after Indonesian Energy Minister Bahlil Lahadalia warned that Jakarta could review energy exports to countries lacking respect. While SKK Migas did not link the gas diversion to those remarks, the timing raises questions about potential political motivations. Singapore, which relies on natural gas for about 95% of its electricity, imports gas through pipelines from Indonesia and Malaysia, as well as liquefied natural gas (LNG) from international suppliers.
The impact on Singapore’s overall gas supply remains unclear, as does any potential effect on electricity generation and prices. Singapore’s Ministry of Energy, Trade and Industry has been contacted for comment, but no response has been received. The move also follows heightened tensions over transboundary haze, with Singapore investigating companies linked to fires in Indonesia.