Indonesia Cuts Gas Supplies to Singapore by 31 Million Cubic Feet a Day
Key Facts
Indonesia cut pipeline natural gas supplies to Singapore by 31 million standard cubic feet a day, in a move that began on October 24 and prompted discussion of contractual commitments and energy security in the importing country. Fortune described the decision, taken by Jakarta on October 23, as a cut of nearly 9% in pipeline gas exports to Singapore. Indonesian Energy Minister Bahlil Lahadalia said on October 26 that the reduced volume represented about 8% of total supplies of 409.55 million standard cubic feet a day. The difference between the two percentages reflects how each was calculated: Fortune estimated the cut as a share of exports, while the minister based his calculation on the supply volume he cited. SKK Migas said the gas had been redirected to support domestic electricity needs.
The cut came from two supply routes: 15 million standard cubic feet a day from Natuna and 16 million from Sumatra, according to data cited by Reuters. Lahadalia said the decision was linked to maintenance work and domestic demand needs, leaving open the possibility that the changes could continue. Asked whether the cut would be permanent, he said, "The situation is still changing." The minister had described the reduced volume as within the minimum limits allowed under existing contracts. He added that a 10% supply cut would have constituted a breach of contract, while the current reduction had not exceeded that threshold. This account frames the cut as a reallocation of supplies during maintenance work and to meet domestic demand, rather than an announcement of an immediate end to the contracts.
Singapore’s Ministry of Energy and Trade and Industry estimated the impact on the power sector at less than 2% of its daily gas demand, even though the cut amounts to 17 billion British thermal units a day, according to the Singaporean minister. The ministry said the country had sufficient alternative supplies from other sources, including natural gas. The availability of alternatives, according to the government’s position, limits the cut’s direct impact on electricity supplies. But Prime Minister Lawrence Wong stressed that Singapore expects commercial commitments to be honored. He said Singapore’s gas importer "will take the necessary steps to protect its rights and interests under these contracts." Singapore has thus affirmed the adequacy of supplies in the near term while keeping its contractual rights under review.
Existing gas supply contracts between Indonesia and Singapore run through the end of 2028, according to The Straits Times. Current supply arrangements date to an agreement Jakarta approved in 2022 to extend supplies through that date at lower volumes than under the previous contract, according to The Business Times. Earlier arrangements also covered the redirection of more Sumatra supplies for domestic use, with gas from Natuna used to offset part of the reduction; an agreement to implement this arrangement was signed in May 2025. The contracts’ horizon through 2028 gives the current dispute implications beyond the impact of the ongoing cut, as the trade relationship remains governed by existing commitments. At the same time, previous arrangements showed that reallocating supplies between the domestic market and Singapore had been under consideration before the current cut began.
Singapore is working to increase the flexibility of its energy system while relying on alternative supplies currently available. The Ministry of Energy said it is building a second liquefied natural gas import terminal alongside the existing facility and working to diversify the energy mix. It also aims to install at least 2 gigawatt-peak of solar capacity by 2030. It also plans to import about 6 gigawatts of low-carbon electricity by 2035. These targets place diversification on a timeline spanning LNG infrastructure, expanded solar power and low-carbon electricity imports. In the near term, supply developments remain linked to maintenance work and domestic demand in Indonesia, while Singapore says it has sufficient alternative gas and that its importer will take the necessary steps to protect its contractual rights.