Indonesia reduces gas exports to Singapore in order to ‘safeguard reliability’ of domestic supplies

About 30 per cent of Indonesia’s natural gas production is currently exported, while the remaining 70 per cent is used domestically, according to Indonesian state news agency Antara.

Singapore’s Deputy Prime Minister Gan Kim Yong had warned in September last year that Indonesia’s growing domestic demand for natural gas could affect how much it was able to export to other countries.

In a parliamentary reply, he said Singapore’s existing gas import contracts with Indonesia were due to expire at the end of 2028.

Mr Gan, who is also Minister for Energy, Trade and Industry (Trade), stressed the importance of securing sufficient and diverse gas supplies, noting that no single country accounted for more than 30 per cent of Singapore’s gas imports in 2024.

Singapore is also building a second LNG terminal, expected to be operational by the end of the decade, to increase its capacity to import gas from suppliers around the world.

The recent comments by Indonesian officials have also come amid heightened alert over transboundary haze, with Singapore stepping up scrutiny of companies potentially linked to fires in Indonesia.

Singapore has announced plans to establish a specialist panel to investigate companies that may have caused or contributed to the haze, while the National Environment Agency has issued notices to 20 companies in Singapore and Indonesia under the Transboundary Haze Pollution Act.

Additional reporting by Kiki Siregar.