Indonesia Cuts Natural Gas Exports to Singapore by 31 Million Cubic Feet per Day

en.Wedoany.com Reported - On October 26, Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia stated that since October 24, the country has reduced its pipeline natural gas exports to Singapore by 31 million standard cubic feet per day, accounting for approximately 8% of the previous daily supply volume through the relevant pipelines. The adjusted natural gas is being prioritized for domestic power generation in Indonesia, involving two supply sources in the Natuna Islands and Sumatra, primarily to meet the electricity demand of Batam Island, Bintan Island, and the Sumatra region.

This adjustment involves two natural gas transmission routes. The Natuna gas field has reduced its supply to Singapore by 15 million standard cubic feet per day, delivered through the West Natuna Transportation System pipeline to Pemping Island and Batam Island to PLN's business unit in Batam; the Sumatra region has reduced its supply by 16 million standard cubic feet per day, redirected through the TGI gas pipeline to supply Batam Island, Bintan Island, and the Sumatra region. Indonesia's upstream oil and gas regulator SKK Migas will continue to monitor gas allocation and domestic power supply conditions.

Regarding contract fulfillment following the export reduction, Bahlil stated on October 26 that the current adjustment remains within the minimum delivery range permitted under existing natural gas supply agreements, and Indonesia will continue to fulfill its contractual obligations. However, Singapore has requested that the relevant gas supply companies strictly enforce commercial contracts. Local gas importer Gas Supply Pte Ltd will verify the supply changes and contract fulfillment with Indonesian suppliers and take corresponding measures in accordance with the agreements.

Approximately 95% of Singapore's electricity is generated from natural gas, and Indonesia is one of its main pipeline natural gas suppliers. According to data published by the Energy Market Authority of Singapore, this round of supply adjustment is expected to last 18 days, with the actual supply reduction amounting to approximately 17 billion British thermal units per day, accounting for less than 2% of Singapore's daily natural gas demand for power generation. Singapore has arranged to supplement its natural gas supply through alternative sources, including increased liquefied natural gas imports, and has retained backup LNG facilities and fuel oil power generation reserves.

Indonesia currently supplies approximately 70% of its natural gas production to the domestic market, with the remaining approximately 30% for export. The government is reassessing natural gas export allocation, prioritizing domestic electricity and downstream industrial gas demand, while continuing to advance the fulfillment of existing cross-border gas supply agreements.