Indonesia’s Ministry of Energy, Trade and Industry (METI) clarified on October 30 that liquefied natural gas (LNG) traded by Singapore-based companies typically moves directly from its source to the destination country. This statement came in response to claims by Indonesian Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia that Singapore might be reselling some of the fuel. METI emphasized that Singapore serves as an international trading hub, with over 50 local firms buying, marketing, and trading LNG sourced globally, including from Indonesia.
Bahlil had suggested on October 29 that some of the 148 LNG cargoes shipped to Singapore might be traded and re-exported rather than used domestically. However, METI noted that the actual cargo usually moves directly from the source to the destination without physically passing through Singapore. The top source markets for these traders include the United States, Australia, and Malaysia.
The remarks followed Indonesia’s decision to reduce pipeline gas exports to Singapore on October 24, citing domestic energy needs. The reductions totaled about 877,822 standard cubic meters per day, with supplies diverted to electricity generation in Batam, Bintan, and Sumatra. Singapore’s Energy Market Authority reported that the actual reduction amounted to 17 billion British thermal units per day over 18 days, representing less than 2% of Singapore’s daily gas demand.
Despite the tensions, senior Indonesian figures sought to ease concerns. Investment Minister Rosan Roeslani affirmed that Singapore’s investment commitments to Indonesia remained intact, and Communications and Digital Affairs Minister Meutya Hafid called for restraint following remarks about potential internet connectivity issues. Both countries agreed to establish a joint task force to tackle transboundary haze from Indonesian forest fires.