Singapore’s central gas buyer affirms Indonesia’s role as ‘important partner’ amid export review warning
Analysts warn that a supply curb could raise power prices, and stress the importance of a diversified supply
Indonesia's central gas buyer confirms the Southeast Asian country's continued significance as a "key regional partner" for Singapore's energy security, according to CEO Alan Heng. The remarks follow Indonesia's Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia's warning that the nation could cease energy exports to countries that "disrespect" it, as well as potentially not renewing gas export contracts with neighboring nations.
Despite declining to comment on the specific ministerial remarks, Heng emphasized Singapore GasCo's commitment to maintaining robust collaboration with regional partners to bolster energy security. The city-state, which relies on natural gas for 95 percent of its electricity production, imported 3.22 million tonnes of gas from Indonesia in 2025, accounting for the majority of its gas supply.
While Singapore is considered sufficiently diversified to handle short-term supply disruptions, alternative gas sources' pricing and availability could affect future power costs. Several experts stressed the importance of Singapore's diversified gas portfolio, which comprises both piped natural gas from Indonesia and Malaysia and liquefied natural gas (LNG) shipped globally.
The country's procurement strategy entails a mix of long-term and shorter-term contracts, as well as spot purchases, providing flexibility to respond to shifting supply and market conditions. However, a prolonged supply curtailment or indefinite halt could compel Singapore to reassess its LNG supply sources.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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