Indonesia says 70pc of its gas stays home — Singapore feels the cut first

Indonesia announced on Saturday that it will cut natural gas exports to Singapore by 31 billion British thermal units per day, starting from the following day, according to the nation's upstream oil and gas regulatory body. The reduction consists of 15 billion BBTUD from the Natuna Islands in the South China Sea and 16 billion BBTUD from Sumatra island in western Indonesia, as reported by state news agency Antara.

SKK Migas chief Djoko Siswanto stated that Singapore is the sole country impacted by this decrease, as the export pipelines are directly connected to the city-state.

Coordinating Minister for Downstreaming and Energy Transition, Bahlil Lahadalia, made the announcement alongside the export cut. He revealed that the Indonesian government is contemplating not extending gas exports to neighboring countries, as it aims to prioritize domestic consumption of the resource. The government intends to support the growth of downstream petrochemical industries by consuming the majority of natural gas domestically.

Presently, Indonesia exports 30% of its natural gas production, with the remaining 70% being utilized within the country.