International Edition
Latest News
Business

Why Indonesia’s Gas Cut to Singapore Backfires

Singapore faces an eight per cent reduction in natural gas deliveries from Indonesia after Jakarta trimmed pipeline supplies by 31 million standard cubic feet per day starting October 24, 2026. The supply cut affects 15 million cubic feet…

Why Indonesia's Gas Cut to Singapore Backfires

Singapore faces an eight per cent reduction in natural gas deliveries from Indonesia after Jakarta trimmed pipeline supplies by 31 million standard cubic feet per day starting October 24, 2026. The supply cut affects 15 million cubic feet from Natuna and 16 million cubic feet from Sumatra, according to Indonesia’s Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia. The move follows a blackout in Batam earlier in the month and a gas export reduction announced by Bahlil amid regional forest and land fire concerns.

Indonesia Defends Energy Cuts Within Contractual Limits

Indonesia implemented the export reduction to divert extra supplies toward domestic electricity needs, Bahlil stated at an October 26 press conference. Bahlil maintained that the cuts fall within minimum contractual limits of around 91 to 92 per cent of total exports, noting that a breach would only occur if reductions exceeded 10 per cent. We have only reduced it by about 8 per cent. We would only be in breach of contract if we were to cut by 10 per cent, said Bahlil, who is also minister of energy and mineral resources. This situation arose partly due to maintenance requirements, but also because of domestic demand. And that is just for the gas — not even accounting for the LNG (liquefied natural gas) we supply, he added. Singapore’s Energy Market Authority reported that the disruption represents less than two per cent of Singapore’s daily gas demand.

Diplomatic Talks Open in Jakarta Over Regional Haze And Gas Reductions

Singapore Foreign Minister Vivian Balakrishnan traveled to Jakarta on October 27 to meet with his Indonesian counterpart Arrmanatha Nasir at the Pancasila building. The discussions addressed bilateral tensions surrounding the regional haze from Indonesian forest fires alongside the natural gas export reductions. Prime Minister Lawrence Wong previously stated that the Singapore government expects all contracted parties to honor their supply commitments, prompting Bahlil to respond that Our nation is a nation that honours contracts, rules. So don’t teach Indonesia on how to honour contracts, as quoted by The Jakarta Post.

State Gas Buyer Manages Shortfall Without Additional LNG Procurement

Singapore GasCo Pte Ltd has not needed to procure extra liquefied natural gas cargoes following the Indonesian pipeline curtailment, Chief Executive Officer Alan Heng stated in an interview. While select power generation companies submitted inquiries regarding additional gas volumes, Heng noted that the supply reduction remains small enough to manage using base inventory alongside existing contingency plans. We have contingency plans to deal with greater disruptions, Heng said. Singapore relies on natural gas for almost all of its electricity generation, supported by a liquefied natural gas terminal network completed in 2013 and expanded in 2014 and 2018.

Why Indonesia's Gas Cut to Singapore Backfires
Photo: CNA

Strategic Energy Diversification Shields City-State From Wider Disruptions

Singapore reduced its reliance on piped gas imports from Malaysia and Indonesia from 100 per cent down to under 50 per cent following infrastructure investment.

Why Indonesia's Gas Cut to Singapore Backfires
Photo: Bloomberg

Frequently Asked Questions

How much gas did Indonesia cut from Singapore’s daily supply?

Indonesia reduced pipeline deliveries by about 31 million standard cubic feet per day starting October 24, 2026, comprising 15 million from Natuna and 16 million from Sumatra.

What percentage of Singapore’s total daily gas needs does the reduction represent?

The total reduction from Indonesia amounts to less than two per cent of Singapore’s daily gas demand, according to statements from Minister for Energy, Trade and Industry Tan See Leng.

Who represented Singapore during the diplomatic meetings in Jakarta on October 27?

Singapore Foreign Minister Vivian Balakrishnan visited Jakarta on October 27, 2026, to meet with Indonesian counterpart Arrmanatha Nasir at the Pancasila building.

Indonesia cuts natural gas exports to Singapore
About the author: Marcus Liu - Business Editor

MBA and ex‑B bureau chief specializing in global finance and fintech. Marcus speaks Mandarin, Japanese, and English, and has interviewed CEOs from the Fortune 50 to Y‑Combinator unicorns. Marcus Liu delivers sharp analysis on markets, startups, and corporate strategy for investors and entrepreneurs alike.