Indonesia Cuts Singapore Gas Exports by 31 BBTUD
Indonesia has cut gas deliveries to Singapore by 31 BBTUD, redirecting supplies from Natuna and Sumatra to domestic energy needs. Singapore’s Energy Market Authority expects the reduction to last 18 days and cover less than 2% of daily gas demand. Importer Gas Supply Pte says customer deliveries have been affected, as the supply dispute unfolds amid tensions over haze from Indonesian forest and land fires.
PANGKALPINANG, Indonesia — Indonesia has cut gas exports to Singapore by 31 billion British thermal units per day (BBTUD), redirecting the supply to domestic energy needs as the two neighbors face tensions over haze from forest and land fires. The reduction began Saturday, Oct. 24, and has already affected deliveries to customers of Singaporean importer Gas Supply Pte.
The move links a shift in cross-border energy trade with power and industrial demand in Indonesia. Singapore’s Energy Market Authority (EMA) estimates the cut will last 18 days and account for less than 2% of the city-state’s daily gas demand. The authority said Singapore has sufficient energy supplies and contingency plans in place.
Gas redirected to Indonesian demand
Djoko Siswanto, head of Indonesia’s upstream oil and gas regulator SKK Migas, said the reduction comprises 15 BBTUD from Natuna and 16 BBTUD from Sumatra. The gas from Natuna will go to a state utility unit in Batam, while supplies from Sumatra are intended to support electricity needs in Batam, Bintan and Sumatra.
That redirection places domestic users closer to the front of the supply line. Gas used to support electricity generation in the named regions may help meet local energy needs, while the government has also signaled it wants to optimize natural gas for domestic industries, particularly petrochemicals that use gas as a feedstock.
“Starting today (Saturday 24/10), we are reducing gas supplies to Singapore from Natuna by 15 BBTUD and from Sumatra by 16 BBTUD,” Djoko said.
Gas Supply Pte said the reduction had affected deliveries to its customers and that it was coordinating with suppliers and customers to manage the temporary shortfall. “Gas deliveries to our customers have been affected by a temporary supply reduction from our upstream supplier in Indonesia,” a company spokesperson said.
Singapore expects a limited demand impact
EMA said the cut covers less than 2% of Singapore’s daily gas demand and that the country has sufficient energy supplies alongside contingency plans. That assessment suggests the reduction is limited in scale against overall daily demand, though the disruption is already visible for companies receiving Indonesian gas.
Indonesia is a major gas supplier to Singapore, according to Bloomberg’s report cited in available reports. EMA has also said that Singapore previously dealt with supply reductions of 20 to 100 BBTUD during planned and unplanned facility maintenance. In those cases, the shortfall could be managed with other gas sources, and Singapore GasCo was ready to increase liquefied natural gas imports.
Those earlier reductions provide context, not a forecast for the current cut. Another importer named in available reports, Sembcorp Gas Pte, had not responded.
Domestic priorities and haze dispute
The export cut followed public signals from Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia. Speaking at the Merdeka Palace on Wednesday, Oct. 21, he said the government could consider not extending gas exports to neighboring countries if domestic demand needed priority. Two days later, he said Indonesia would optimize natural gas production for domestic use, especially in the petrochemical industry, and that any export restrictions would apply to all countries.
Indonesia currently uses 70% of its natural gas production domestically and exports 30%, according to available reports. The government plans to review that allocation. Any shift could affect not only trade with Singapore but also the availability of gas for Indonesian electricity needs and industries that rely on it as a raw material.
The supply decision comes amid a separate dispute over haze from fires in Indonesia that has reached Singapore in recent weeks. Singapore’s National Environment Agency (NEA) sent preventive action notices to seven companies in Sumatra suspected of links to the fires, asking them to stop land burning and submit firefighting plans. NEA later wrote to three more companies: Buana Megatama Jaya, Mananjung Hayak and Baratama Putra Perkasa.
Singapore has also sought information from 10 companies registered in the country. Prime Minister Lawrence Wong pledged to investigate companies considered connected to the haze and pursue legal action. Singapore law allows fines of up to 100,000 Singapore dollars per day, but available reports say no penalties have been imposed.
Singapore’s Ministry of Law said a panel of experts, including law firms, auditors and cross-border investigation companies, would assist the inquiry. “The conduct of local and foreign companies, corporate relationships, and supply chains will be examined to determine whether they were involved in causing or allowing fires that caused or contributed to the haze,” the ministry said.
