Indonesia cuts gas exports to Singapore

Jakarta, Indonesia has reduced natural gas exports to Singapore, prioritizing domestic demand amid ongoing regional air pollution caused by wildfires. State agency SKK Migas, which oversees the oil and gas sector, announced that a total of 31 million standard cubic feet per day would be cut from its supply to Singapore. This includes 15 million standard cubic feet per day from Indonesia's Natuna in Riau island and 16 million from Sumatra.

SKK Migas chief Djoko Siswanto stated the move was made to maintain reliable domestic gas supply for electricity, with daily monitoring of developments. Only Singapore is currently affected, as Indonesia is a key source of natural gas for the city-state, providing it with 145.3 billion cubic feet in 2024. Singapore's Energy Market Authority acknowledged the reduction represents less than two percent of the city-state's daily gas demand and expressed understanding of importers pursuing contractual remedies for the supply disruption.

The reduction comes amid a diplomatic disagreement between Indonesia and neighboring countries over haze from wildfires on Borneo and Sumatra islands, which have led to dangerous air pollution levels in Indonesia, Malaysia, Singapore, and East Timor. Indonesia's energy minister is considering curbing gas exports to prioritize domestic consumption, while President Prabowo Subianto has berated countries that insult Indonesia over the haze crisis.