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Gas supply cut from Indonesia accounts for less than 2% of S’pore’s daily gas demand: EMA

Singapore has also been moving to further diversify its energy sources. Read more at straitstimes.com.

The Straits TimesAng Qing查看原文 ↗
Natural gas currently accounts for about 95% of Singapore’s electricity generation mix.
Natural gas currently accounts for about 95% of Singapore’s electricity generation mix.

Natural gas currently accounts for about 95% of Singapore’s electricity generation mix.

ST PHOTO: KUA CHEE SIONG

Published Oct 24, 2026, 06:13 PM

Updated Oct 24, 2026, 08:05 PM

SINGAPORE – The reduction in the gas supply from Indonesia will make up less than 2% of Singapore’s total daily gas demand, said the Energy Market Authority (EMA) in the evening of Oct 24.

EMA was responding to queries from The Straits Times following announcements from an Indonesian official that it will be cutting gas exports to Singapore via two pipelines directly linked to the city-state.

The chief of Indonesia’s upstream oil and gas regulator SKK Migas Djoko Siswanto had been quoted in Indonesian media outlets on Oct 23 saying that the country will be cutting natural gas exports to Singapore by 31 billion British thermal units per day (BBTUD) from Oct 24.

The EMA spokesperson said that based on the information from Singapore’s natural gas importers, the total reduction amounts to 17BBTUD over a period of 18 days.

Singapore’s total daily gas demand amounts to more than 1,000 BBTUD, he added.

“EMA understands that our importers will pursue all relevant recourse in their contracts for the gas supply disruption,” the spokesman added.

He said the authority has contingency plans in place to deal with such reductions.

The EMA spokesman cited how Singapore had experienced reductions in its gas supply ranging from 20 BBTUD to 100 BBTUD in recent months, due to planned or urgent maintenance. That shortfall had been replaced with other gas sources without incident, he said.

EMA said Singapore has sufficient energy supplies to meet national demands.

Singapore relies on natural gas for 95% of its electricity needs. This gas can come in piped form from Malaysia and Indonesia, or in liquefied form (LNG) from all over the world.

The Republic has also been stepping up efforts to diversify its energy sources further, by investing in solar panel deployment domestically, and doing research on emerging technologies such as nuclear and geothermal energy.

The EMA spokesman said the Singapore GasCo – the Republic’s central procurer and supplier of natural gas – is operationally ready to import more at any time.

Said EMA: “Besides Indonesia, Singapore imports natural gas from other sources around the world.”

“Power generation companies are further required to maintain sufficient fuel reserves for power generation, including diesel reserves.”

Meanwhile, one of Singapore’s largest gas suppliers said that its delivery of gas to customers here has been affected by “temporary reductions” in supply from its supplier in Indonesia.

The firm Gas Supply said it has been in direct communication with customers who are impacted and appreciate their patience and understanding during this period.

“(The company) continues to engage closely with our upstream supplier to manage the situation,” said the importer wholly owned by Temasek.

The gas cuts come after remarks made on Oct 22 by the country’s Energy and Mineral Resources Minister Bahlil Lahadalia.

Bahlil, who is also Coordinating Minister for Downstreaming and Energy Transition, said that Indonesia could stop exporting energy to countries that failed to show it mutual respec t.

According to media reports, the cuts affected only Singapore because the pipelines from Natuna and Sumatra were connected directly to the city-state.

Exports from Natuna would be reduced by 15 BBTUD, while another 16 BBTUD would be cut from the Jambi Merang gas in Sumatra.

This had been framed in Indonesian media reports as part of the President Prabowo Subianto’s government’s moves to prioritise domestic energy needs amid growing concerns over energy security.

Checks by ST found that natural gas from Sumatra is exported to Gas Supply.

Meanwhile, gas from Indonesia’s Natuna Sea is transported through a direct subsea pipeline to a receiving facility operated by Sembcorp Gas.

According to Sembcorp Industries’ 2023 annual report, the company entered into a sales agreement valued at about $1.9 billion to import piped natural gas from the West Natuna gas fields.

Both agreements were expected to last until 2028.

ST has contacted Sembcorp with queries.

Indonesia has been planning to reduce gas exports to Singapore for several years to meet growing domestic demand. In 2022, Jakarta agreed to extend gas supplies to Singapore until 2028, but at lower volumes than under the previous contract.

David Broadstock, an economist who monitors the energy sector, called the abrupt cut a “surprising event” for Singapore’s energy supply chain.

But he noted the Republic is well-prepared to handle it, with potential alternatives from countries like the US.

He pointed out the timing of the cuts, just before the Singapore International Energy Week commencing on Oct 26, and during a period of increased complexity between the two nations over transboundary haze enforcement.

Said Broadstock: “There is a question mark over whether there is a political element tied to this action, potentially making it a reaction to the haze issue.

“I wouldn’t say for sure that it is a definitive driving factor, but it certainly cannot be ruled out.”

Broadstock expects that buyers of natural gas will immediately look to secure alternative contracts, potentially drawing from the US or the Middle East to fill the gap.

Despite the need to source presumably more expensive alternatives for the shortfall, he does not foresee a major price surge for consumers.

He said: “We shouldn’t expect massive market disruptions.

“It isn’t the global market taking a shock, but rather a preferred supplier taking a step back.”

Ang Qing is a journalist covering local and international breaking news at The Straits Times, with a focus on the environment, crime, technology and social issues.

Singapore-Indonesia ties

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