Why is natural gas trending in Singapore?
Indonesia started cutting gas exports to Singapore by 31 billion British thermal units per day on October 24. The move aims to secure Indonesia's own energy needs and support its domestic petrochemical industry.
What happened
- Earlier
Indonesia agreed to keep supplying gas to Singapore until 2028, though at lower volumes than previous deals [1].
- April 2025
Indonesian officials planned to cut Sumatra gas exports while using Natuna supplies to compensate [1].
- 21 Oct, 2026
Minister Bahlil Lahadalia suggested Indonesia might not renew gas export deals with neighbors [1].
- 24 Oct, 2026
Indonesia officially reduced exports to Singapore from the Natuna and Sumatra pipelines [1].
What you need to know
The cut totals 31 billion British thermal units per day, split between Natuna (15) and Sumatra (16) [1].
Natural gas is used to produce 95% of Singapore's electricity [2].
Singapore uses a mix of piped gas from Malaysia and Indonesia, and global LNG shipments [2].
Singapore has LNG storage capacity of up to 11 million tonnes per year to help manage supply shocks [2].
It is not yet confirmed if Indonesia will renew its gas export contract with Singapore when it expires at the end of 2028 [2].
Background
Indonesia currently uses 70% of its gas production domestically and exports the remaining 30% [1]. The government is now reviewing these allocations to prioritize national energy security and downstream processing [1]. Singapore relies heavily on imported gas, with piped gas making up 43% of imports and LNG making up 57% in 2025 [2]. To mitigate risks, Singapore GasCo maintains a diversified portfolio of long-term and short-term contracts [2].
Questions people ask
Will this cause electricity prices to rise?
Analysts suggest supply curbs could increase power prices over time, depending on the duration and the cost of alternative gas [2].
How much of Indonesia's exports were cut?
The reduction is roughly 8% of the pipeline gas Indonesia sent to Singapore in 2024 [1].
Where this came from
[1] straitstimes.com
Indonesia begins cutting natural gas exports to Singapore from Oct 24: Reports
Preview image from straitstimes.com
[2] businesstimes.com.sg
Singapore's central gas buyer affirms Indonesia's role as 'important partner' amid export review warning
Preview image from businesstimes.com.sg
Found through Google Trends and drafted with AI from at least two cited sources. Published automatically after passing our automated checks for sources, wording and safety. It may not have been reviewed by a person yet. Report a correction.