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Singapore Responds to Indonesia’s Gas Export Cuts with Contract Review

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Singapore’s Prime Minister Lawrence Wong addressed concerns following Indonesia’s decision to cut natural gas exports to the city-state. Speaking at the PAP conference on October 25, 2026, Wong emphasized the importance of honoring commercial contracts and stated that Singapore’s gas importer would take necessary steps to protect its rights and interests.

The reduction, announced by Indonesia on October 24, amounts to 31 billion British thermal units per day (BBTUD). The Energy Market Authority (EMA) noted that this cut represents less than 2% of Singapore’s total daily gas demand, which exceeds 1,000 BBTUD. The affected gas is supplied through pipelines from Natuna and Sumatra.

Minister for Energy, Trade and Industry Tan See Leng confirmed that Gas Supply, a wholly-owned subsidiary of Temasek, would investigate potential breaches of contract and pursue commercial remedies if necessary. Wong also highlighted Singapore’s preparedness, citing investments in liquefied natural gas terminals to diversify supply sources.

Looking beyond natural gas, Wong discussed the potential of nuclear energy as a cleaner power source. He acknowledged safety concerns but stressed the need for careful assessment. Singapore will undergo an evaluation by the International Atomic Energy Agency in 2027 to determine its readiness for nuclear energy deployment.

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