Indonesia Begins Cutting Natural Gas Exports to Singapore From Oct 24

Indonesia has begun reducing natural gas supplies to Singapore by 31 billion British thermal units per day (BBTUD), with the move taking effect on Oct 24 as Jakarta prioritises domestic energy consumption amid growing concerns over energy security.

The reduction affects pipeline gas supplied from two Indonesian regions, Natuna and Sumatra. The decision comes as the government of President Prabowo Subianto considers further measures to ensure sufficient energy supplies for domestic industries and consumers.

According to Indonesian media reports, upstream oil and gas regulator SKK Migas confirmed that exports from Natuna would be reduced by 15 BBTUD, while another 16 BBTUD would be cut from supplies originating in Sumatra.

SKK Migas chief Djoko Siswanto reportedly announced the reductions on Oct 23 during an energy industry awards event in Jakarta. He said the cuts would affect Singapore because the pipelines involved are directly connected to the city-state.

Singapore Faces Reduction in Indonesian Pipeline Gas Supplies

The latest reduction represents approximately 8 per cent of the pipeline gas Indonesia exported to Singapore in 2024, based on figures from the US Energy Information Administration (EIA).

The EIA recorded Indonesian natural gas exports to Singapore at approximately 4.11 billion cubic metres in 2024. However, the precise proportion of Singapore’s current gas supply that will be affected remains unclear.

Natural gas is an important part of Singapore’s electricity generation mix. A reduction in supplies from Indonesia could therefore place greater emphasis on the country’s ability to diversify its energy sources and maintain reliable electricity generation.

The immediate impact on electricity prices and supply reliability will depend on how Singapore’s gas buyers and power generation companies manage the shortfall, including whether alternative supplies can be secured. The export reduction alone does not establish that Singapore will face an electricity shortage or an immediate increase in household utility bills.

Indonesia Has Been Planning Export Cuts for Years

Jakarta’s latest move follows several years of efforts to redirect more of its natural gas towards domestic consumption. In 2022, Indonesia agreed to extend gas supplies to Singapore until 2028, although the agreed volumes were lower than those under the previous arrangement.

In April 2025, Djoko said Indonesia intended to reduce gas exports from Sumatra to Singapore, with supplies from Natuna expected to compensate for the reduction, Reuters reported at the time.

The following month, Indonesian energy company MedcoEnergi entered into a gas swap agreement involving Singapore buyers Sembcorp Gas and Gas Supply, among others. The arrangement allowed more gas from Sumatra to be redirected towards Indonesia’s domestic market.

The latest decision marks a broader reduction, however, as supplies from both Sumatra and Natuna are affected.

Indonesia Puts Domestic Energy Security First

The export cuts also follow increasingly firm statements from Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia, who has argued that the country must safeguard its resources against uncertain global energy conditions.

On Oct 21, Bahlil said the government was considering not renewing gas export arrangements with neighbouring countries when existing agreements expire.

He cited the need to protect national energy security and ensure sufficient supplies for domestic consumers and industries amid geopolitical uncertainty.

Indonesia’s approach reflects a wider policy priority of meeting domestic energy demand before committing resources to overseas markets. For Singapore, which imports much of its energy, developments in neighbouring countries highlight the importance of maintaining diversified energy supplies and strengthening long-term energy resilience.

The extent of the impact will depend on the duration of Indonesia’s export restrictions, the availability of replacement gas supplies and how both countries manage their existing commercial arrangements.