Indonesia cuts natural gas exports to Singapore amid regional haze dispute

Jakarta, on October 25, announced a decision to cut natural gas exports to Singapore in order to prioritize domestic demand, amid a dispute over regional air pollution caused by wildfires on the Indonesian archipelago. The head of SKK Migas, a state agency overseeing the oil and gas sector, revealed that the country would reduce its supply to Singapore by a total of 31 million standard cubic feet per day.

Fifteen million standard cubic feet per day will be cut from Natuna in Indonesia's Riau island, while 16 million will be cut from Sumatra, as per SKK Migas chief Djoko Siswanto's statement.

According to Siswanto, the move was made to ensure the reliability of domestic gas supply for electricity production. He added that they would be monitoring the situation on a daily basis.

Currently, only Singapore is affected by this reduction. In 2024, Indonesia was one of Singapore's primary sources of natural gas, supplying the city-state with 145.3 billion cubic feet. The Singapore Energy Market Authority (EMA) stated that the total reduction is equivalent to less than two percent of the city-state's daily gas demand. EMA noted that its importers would pursue all relevant recourse in their contracts for the gas supply disruption and that contingency plans are in place to deal with such reductions.

The reduction in gas exports follows a diplomatic dispute between Indonesia and other regional countries due to haze from wildfires on Borneo and Sumatra islands, which are enveloping cities in neighboring states. Indonesian Energy Minister Bahlil Lahadalia hinted at the possibility of curbing gas exports to prioritize domestic consumption and warned that Jakarta would take action against countries that do not respect Indonesia.

Indonesian President Prabowo Subianto criticized "countries that like to insult" his nation over the haze crisis, without naming specific countries.

Indonesia has been grappling with controlling fires that deforestation monitor Nusantara Atlas reported have consumed over 1.9 million hectares in the nine months leading up to September. The haze has caused air pollution levels to surge to dangerous levels in Indonesia, Malaysia, Singapore, and East Timor. This prompted the Asean regional bloc to call for a meeting to address the crisis. Singapore has promised legal action against companies responsible for the fires.