Indonesia Cuts Gas Exports to Singapore by 31 Billion British Thermal Units a Day
Key Facts
Indonesia began cutting natural gas exports to Singapore by 31 billion British thermal units a day on October 24, shifting from a review of supplies to an actual reduction in flows. The head of Indonesia’s oil and gas regulator, SKK Migas, said the measure applies only to Singapore because the pipelines concerned connect directly to the city-state. The decision comes as the government pushes to give greater priority to domestic needs. The cut includes volumes from Natuna and Sumatra, the regulator’s head said. It was not clear whether the reduction would be temporary or permanent.
The daily cut comprises 15 billion British thermal units from Natuna and 16 billion from Sumatra, SKK Migas’ head said, according to Antara. The Straits Times reported that the portion from Sumatra comes from the Jambi Merang field; the original statement specifies Sumatra but does not name the field. The two volumes total 31 billion British thermal units a day, the announced reduction in exports to Singapore. The regulator’s head said the affected export pipelines connect directly to the city-state, making it the only destination covered by the measure. Available statements gave no timetable for ending the cut or details on how the volumes that will no longer be exported would be allocated.
Jakarta’s move is tied to government calls to direct more gas to domestic use, including petrochemical industries Indonesia is seeking to develop. An SKK Migas official said the government was encouraging the development of downstream petrochemical industries, explaining that gas is a raw material for them. In remarks reported by The Straits Times on October 23, Indonesian Energy Minister Bahlil Lahadalia said about 30% of gas production was exported, while 70% was allocated to domestic consumption. He added that the government was reassessing the allocation to strengthen domestic supplies. The cut puts that priority into practice on one export route, while the broader policy aims to meet industrial needs and domestic demand.
The move matters to Singapore because of its heavy reliance on imported gas for electricity generation. Singapore’s Ministry of Energy and Trade and Industry said imported natural gas is used to generate about 95% of the country’s electricity. In 2025, pipeline natural gas accounted for 43% of Singapore’s total gas imports, compared with 57% for liquefied natural gas, according to The Business Times. The breakdown shows that pipeline gas makes up a significant part of the import mix, alongside LNG. Singapore’s ministry said growth in domestic demand in Indonesia could affect the amount of gas Jakarta can continue exporting to other countries. The cut thus intersects with Singapore’s reliance on imports and Indonesia’s reassessment of where its output goes.
The supply backdrop includes the gas supply agreement between the two countries, which Jakarta agreed in 2022 to extend through the end of 2028 at lower volumes than those stipulated in the previous contract, according to The Straits Times. It is unclear whether the current cut is part of that arrangement or an additional change, and its duration has not been settled. In Singapore, the chief executive of the central gas buyer said the country expected Indonesia to remain an important regional energy security partner. He added: "We will continue to work closely with our regional partners as part of our efforts to strengthen Singapore’s energy security and resilience." The remarks reflect the buyer’s desire to maintain cooperation despite Jakarta’s review of exports.
Singapore is also seeking to diversify the contracts covering its future needs. The head of the central gas buyer said its procurement strategy includes long-term and short-term contracts, as well as spot purchases. The company launched its first long-term tender to buy LNG to secure supplies for up to 10 years, with deliveries due to begin in 2029, according to The Business Times. The tender offers a contracting route extending beyond the end of the Indonesian supply agreement, which was extended through 2028. The end date for the current cut remains unspecified in available statements, as Indonesia moves to reassess the balance between exports and domestic consumption.