Energy · Cross-border gas supplySingapore gas cut: Indonesia diverts 31 million standard cubic feet a dayAired October 25, 2026 at 5:50 AM UTCWritten October 25, 2026 at 5:55 AM UTCRead the write-upThis storyTranscript · LOADING0:07Indonesia is diverting gas from Singapore to fuel its own power supply.0:11Singapore says it has enough energy to keep electricity supplies stable, but the0:15reduction has reached a major gas supplier and prompted a demand to honor signed0:19contracts.0:20The unresolved issue is how the affected companies will restore deliveries, secure0:24substitutes, or enforce their contractual rights.0:27Gas from Natuna and Sumatra is being redirected toward Indonesian electricity needs.0:32The destinations include Batam, Bintan, and Sumatra.0:35Joko Siswanto, who heads Indonesia's upstream oil and gas regulator SKK Migus, says0:40the diversion will help maintain reliable domestic gas supplies for power.0:44One part of the Natuna diversion runs through the West Natuna Transportation System,0:48then Pulau, Pemping, and Batam, to the utility PLN Batam.0:53That gives a concrete destination for gas previously supplied across the border.0:57Indonesia began reducing the exports on October 24th.1:00SKK Migus announced a reduction of 31 million standard cubic feet a day.1:05The regional breakdown is 15 million from Natuna.1:08and 16 million from Sumatra.1:09Those figures describe the gas being diverted rather than the total Indonesia1:13previously supplied to Singapore.1:15A major Singapore gas supplier has experienced temporary reductions from an1:19Indonesian supplier.1:21That gives the decision an immediate commercial consequence.1:24On October 25th, Prime Minister Lawrence Wong addressed those supply commitments at1:28the People's Action Party Convention, calling for parties to honor their commercial1:32gas contracts.1:33Wong said Singapore's gas importer would take necessary steps to protect its rights1:37and interests.1:38Siswanto's explanation focuses on Indonesia's electricity needs.1:42The practical tension is between a government's domestic supply priorities and the1:46delivery commitments made by commercial suppliers.1:49The terms of the affected contracts will shape what those companies can do.1:52We don't know what provisions allow temporary reductions.1:55Wong's remarks set out an intention to protect contractual rights.1:58Any decision about restoring gas, arranging substitutes, or pursuing remedies will2:02depend on the companies and their agreements.2:04Two different measurements are circulating for the reduction.2:07One uses 31 million standard cubic feet a day, another uses 31 billion British2:13thermal units a day.2:14Cubic feet measure volume, while British thermal units measure energy, the matching2:19numbers don't establish an exact conversion.2:21The percentage comparisons also need care.2:24About 8% compares the cut with Indonesian pipeline exports in 2024.2:28A roughly 9% figure also uses Indonesian pipeline exports as its reference.2:32Without a matching total immediately before the reduction, the current bilateral2:36percentage isn't clear.2:37Singapore's Energy Market Authority puts the reduction at less than 2% of the2:41country's total daily gas demand.2:43That's the share of Singapore's overall needs.2:46The authority says sufficient energy supplies and contingency arrangements are2:49available to maintain stable electricity supply.2:52Singapore is also ready to obtain more liquefied natural gas if needed.2:56That readiness gives it another supply option, though replacement terms and costs3:00would still matter to the companies involved.3:02A small share of national demand doesn't tell an affected importer what replacing3:06its lost gas would cost.3:08Wildfire smoke from Borneo and Sumatra has added tension to regional relations.3:12President Prabowo Subianto criticized unnamed countries over the haze crisis.3:17Indonesian officials have given domestic electricity supply as the reason for3:20diverting gas.3:21They haven't connected the decision to that dispute.3:24Wang also identified exploring nuclear power and strengthening global partnerships3:28as ways to improve energy security.3:30Those are longer-term diversification options.3:33The immediate commercial problem still concerns the gas already being reduced and3:37the arrangements the affected companies make to deal with it.3:39A separate importer notification pairs 17 billion British thermal units with an3:4418-day period.3:45It's unclear whether that energy figure is a daily rate or how it relates to the3:49full diversion.3:50It therefore doesn't give a reliable date for restoring all the reduced exports.3:54Singapore says it can sustain stable electricity supplies while the commercial3:58arrangements are worked out.3:59The affected companies still have to settle whether deliveries resume substitutes4:03are arranged or contractual remedies are pursued, and on what terms.4:06Nobody has given a firm date for restoring the full announced reduction.Explore with HeyDexFollow via RSSThe shortThe short ↗
