Indonesia reduced piped natural gas supplies to Singapore by 31 billion British thermal units per day starting Oct 24, prompting reactions from Singapore.
Bahlil Lahadalia Defends Supply Reductions and Contractual Minimums
The reduction remains within the minimum export volume stipulated in existing commercial agreements, Energy and Mineral Resources Minister Bahlil Lahadalia stated during an Oct 26 press briefing.
“No one needs to lecture Indonesia on the importance of honouring contracts,” Bahlil said. He emphasized that the government must balance its international obligations with domestic energy needs across the power and industrial sectors.
Addressing broader diplomatic ties, Bahlil remarked: This is where the principle of mutual cooperation comes in. We must ensure equal treatment. Indonesia is perhaps too kind, too committed to honouring its contracts,
adding: But international relations must be built on mutual respect among all parties.
Singapore Expects Compliance and Prepares Contingency Measures
Wong confirmed that local gas importers would take necessary steps to protect their rights and interests.
Wong stated: The gas supplies are covered by commercial contracts. We expect all parties to honour their commitments, and Singapore’s gas importer will take the necessary steps to protect its rights and interests under these contracts.
Most of Singapore’s electricity is currently generated using natural gas, and a significant amount of gas is imported through pipelines from Indonesia, Wong noted. Minister for Energy, Trade and Industry Tan See Leng stated on Sunday that Singapore’s electricity prices in the short term are unlikely to be affected by Indonesia’s reduced natural gas exports, noting: In fact, if anything at all, we should be looking at the world prices because a lot of our gas, the unit price is actually pegged to the movement of some of the key global index itself,
and adding: We have always looked at energy as a very critical part of our entire country’s economy, sustainability, and also our survival. Energy is existential for all of us, so we have put in place contingency measures, insurance measures, to ensure that our energy supply is diversified.
Piped natural gas accounted for 43 per cent of Singapore’s total gas imports in 2025. To mitigate single-source vulnerabilities, Singapore has invested in liquefied natural gas terminals and international supply chains.
Diverted Volumes Support Domestic Utilities in Batam and Sumatra
The supply cuts affect specific pipeline routes connecting directly to Singapore. Indonesia redirected 15 BBTUD from the Natuna production area to state-owned utility PLN in Batam, while another reduction from Sumatra was allocated to meet electricity demand in Batam, Bintan, and Sumatra.
Indonesia’s upstream oil and gas regulator, SKK Migas, oversees the infrastructure involved, including the WNTS–Pulau Pemping–Batam pipeline and the TGI pipeline.
Indonesia Reviews Energy Exports Amid Warnings
The export adjustment follows earlier warnings from Indonesian officials regarding resource sovereignty and regional respect. On Oct 22, Bahlil cautioned that Indonesia might review energy exports to countries that disrespect national interests, though he did not name specific nations at the time.
Existing import contracts between Indonesia and Singapore are scheduled to expire at the end of 2028, according to statements made in Singapore’s Parliament by Deputy Prime Minister Gan Kim Yong.
Indonesia Reduces Gas Supplies to Singapore
How much did Indonesia reduce gas supplies to Singapore?
Indonesia reduced piped gas supplies to Singapore by 31 billion British thermal units per day starting Oct 24, which Singapore’s Energy Market Authority noted amounts to less than 2 per cent of the city-state’s total daily gas demand.
When do the current gas supply contracts expire?
Existing natural gas import contracts between Indonesia and Singapore are due to expire at the end of 2028.