Reduction in Indonesia gas supply amounts to less than 2% of Singapore’s total daily demand: EMA

Indonesia announced on Saturday it would reduce natural gas exports to Singapore to prioritize domestic supply, an official said. The two nations are in conflict over regional air pollution caused by wildfires on Indonesia's islands. SKK Migas, the state agency overseeing the oil and gas sector, explained that a total of 31 million standard cubic feet per day would be cut from Singapore's supply, with 15 million coming from Indonesia's Natuna islands and 16 million from Sumatra.

This reduction, which represents about 8% of Indonesia's total exports, aims to maintain a reliable domestic gas supply for electricity generation, according to Djoko Siswanto, head of SKK Migas. The move affects only Singapore for now, and Indonesia remains one of Singapore's primary sources of natural gas, providing the country with 145.3 billion cubic feet in 2024.

The Singapore government has not yet commented on the decision. The development follows a diplomatic dispute between Indonesia and neighboring countries due to haze from wildfires, which has led to dangerous air pollution levels not only in Indonesia but also in Malaysia, Singapore, and East Timor. Indonesian President Prabowo Subianto criticized countries that insult Indonesia over the haze crisis, but did not name specific nations.

Indonesia has been battling wildfires that have consumed over 1.9 million hectares in the past nine months, prompting the Asean regional bloc to call for a meeting to address the crisis. Singapore has threatened legal action against companies responsible for the fires.