Indonesia Cuts Pipeline Gas to Singapore as Wong Expects All Parties to Honour Contracts
Indonesia began cutting pipeline gas to Singapore on Oct. 24, 2026, and Singapore's prime minister said he expects all parties to honour their commitments. Reported figures for the cut's size differ.
Indonesia began cutting pipeline gas exports to Singapore on Saturday, Oct. 24, 2026, and says the cut is meant to bolster domestic energy generation. Djoko Siswanto, head of SKK Migas, the government agency overseeing the upstream oil and gas industry, confirmed the cut and its allocation, according to The Star.
Singapore's Prime Minister Lawrence Wong said over the weekend that gas supplies are covered by commercial contracts and that he expects all parties to honour their commitments, Fortune reported. Fortune reported the cut as 9% and said Indonesia blamed domestic shortages.
How Much Gas Is Moving, and Why the Figures Differ
The Star reports the cut at about 31 million standard cubic feet a day. Jakarta Globe gives the cut as 31 billion British thermal units a day (BBTUD) and puts pre-cut flows at about 409.55 BBTUD. Of the cut, 15 million cubic feet a day from Natuna goes to a state utility unit in Batam, and 16 million from Sumatra supports electricity needs in Batam, Bintan and Sumatra, according to The Star.
The share of exports is reported three ways. Fortune gives 9%. Bahlil Lahadalia, the coordinating minister for downstreaming and energy transition, put the reduction at about 8% of total exports, according to Jakarta Globe. The Star cites a Bloomberg calculation from energy ministry data at about 14% of Indonesia's average pipeline exports to Singapore last year.
Bahlil said the contract cap is between 91 and 92 BBTUD, that the 31 BBTUD cut falls under it, and that a 10% cut would amount to a violation. He told reporters on Monday that Indonesia had never breached its gas contract with Singapore, Jakarta Globe reported.
Singapore's Supply Position and Power Prices
Singapore's Energy Market Authority (EMA) said the country has sufficient supplies and contingency plans for reductions of this kind. It said the cut is expected to run over 18 days and represents less than 2% of total daily gas demand, according to The Star.
Singapore's minister for energy, trade and industry, Tan See Leng, gave the under-2% figure for power-sector gas demand, Fortune reported. The two descriptions use different bases, and the sources read do not reconcile them.
The government told the public that electricity prices will not be affected, Jakarta Globe reported. None of the sources gives figures for industrial gas or power tariffs, so the effect on industrial costs is not confirmed.
Gas Supply Pte, an importer of Indonesian gas, said its deliveries to customers had been affected by temporary reductions from its Indonesian supplier. Sembcorp Gas did not immediately respond to a request for comment, The Star reported. The EMA said Singapore GasCo is ready to import more liquefied natural gas (LNG) at any time. Singapore still receives 146 LNG cargoes from Indonesia, Jakarta Globe reported.
Asian LNG Buyers and the Hormuz Question
The reason given for the cut is domestic. The Star reports it is meant to bolster domestic power generation and energy security as President Prabowo Subianto seeks to shore up domestic supply. The same report says a 16-hour blackout in Batam earlier this month, affecting more than 411,000 customers, made the move more prescient, and that the government replaced the chief executive of state utility PT PLN after the outage.
None of the three articles read for this piece ties the cut to disruption through the Strait of Hormuz. None quantifies its effect on global LNG prices or spot cargo availability. For global buyers, the reported facts are narrower: Indonesian pipeline gas to Singapore is being cut for domestic reasons. Bahlil also said after a cabinet meeting on Oct. 21 that he might consider not extending gas exports to neighbouring countries, Fortune reported.
“Indonesia says the cut stays inside its contract cap, while Singapore says it has sufficient supplies and replacement gas.”
What Happens Next
The EMA's statement gives 18 days as the expected period of the reduction, according to The Star. As of Oct. 26, 2026, none of the three reports says whether the reduction will continue after that period or whether Indonesia will change the contract cap.
Singapore's position rests on commercial contracts, and Indonesia's rests on the contract cap that Bahlil described. The sources read do not include an SKK Migas or ministry notice setting out the volumes, so readers should treat the volume figures as press-reported until one is published.
