Indonesia cuts pipeline gas exports to Singapore amid haze dispute
Jakarta is sending gas from Natuna and Sumatra to its own power plants, while Singapore says the cut is under 2 per cent of its daily demand.
Indonesia began cutting natural gas exports to Singapore on Saturday. Pipeline supplies from Natuna and Sumatra are being diverted to domestic electricity generation, the South China Morning Post and The Straits Times reported.
Djoko Siswanto, head of the upstream oil and gas regulator SKK Migas, said exports from Natuna would fall by 15 units a day and those from Sumatra by 16, a total of 31. The outlets gave different units for those figures. The Straits Times reported them as billion British thermal units per day (BBTUD), while the SCMP gave them as million standard cubic feet per day. The Straits Times said the Sumatra cuts would come from the Jambi Merang gas field.
"Starting tomorrow, we will reduce gas exports to Singapore by 15 BBTUD from Natuna and 16 BBTUD from Sumatra," Djoko was quoted by The Straits Times as saying on Friday at an energy industry awards ceremony in Jakarta. Both outlets reported that he said the move was meant to keep domestic gas supply for electricity reliable.
According to The Straits Times, gas from Natuna will go to state electricity company PLN's operations in Batam, and the Sumatra gas will supply power needs in Batam, Bintan and Sumatra. Djoko said only Singapore was affected because the export pipelines run directly to the city-state, and that SKK Migas would monitor the arrangements daily.
The two outlets put the decision in different contexts. The SCMP reported it as the neighbours argue over haze from wildfires in Borneo and Sumatra, and said President Prabowo Subianto had criticised "countries that like to insult" Indonesia over the crisis without naming any. The Straits Times tied the cut to energy security and recent comments by Energy and Mineral Resources Minister Bahlil Lahadalia.
On 21 October Bahlil said Indonesia might not extend gas exports to neighbouring countries "because we have to survive and meet domestic needs". A day later he said he would "not hesitate to consider stopping exports to countries that do not respect Indonesia", though he did not identify a country. He has said Indonesia exports about 30 per cent of its gas output.
The Straits Times reported that Jakarta has planned to reduce supply to Singapore for several years. In 2022 it agreed to extend supplies until 2028 at lower volumes, and Singapore's import contracts with Indonesia expire at the end of 2028. Talks on cross-border electricity trade have stalled over pricing, Bahlil said on 19 October.
Later on Saturday, a spokesperson for Singapore's Energy Market Authority said importers had been told the total reduction was 17 BBTUD over 18 days. That is less than 2 per cent of Singapore's daily gas demand of more than 1,000 BBTUD. "EMA understands that our importers will pursue all relevant recourse in their contracts for the gas supply disruption," the spokesperson said.
Sources: South China Morning Post, Indonesia cuts gas to Singapore amid Borneo, Sumatra wildfire haze; The Straits Times, Indonesia begins cutting natural gas exports to Singapore from Oct 24: Reports.
