Indonesia is reducing natural gas exports to neighboring Singapore as President Prabowo Subianto seeks to shore up domestic supply and strengthen energy security for Southeast Asia's largest economy. SKK Migas, the government agency overseeing Indonesia's upstream oil and gas industry, said pipeline-gas deliveries to the city-state are being cut by about 31 billion British thermal units per day, local media reported, citing the agency's head Djoko Siswanto. The cuts are effective Saturday and involve pipeline gas flowing from Natuna and Sumatra. No other countries are currently affected, state media agency Antara reported.
The gas meant for Singapore will be redirected for electricity generation in Batam, Bintan and Sumatra, according to other media reports citing Djoko. Indonesia is the biggest supplier of gas to Singapore, which depends on imported gas for nearly all of its power generation. The cuts equal about 14% of Indonesia's average pipeline-gas exports to Singapore last year, according to energy ministry data compiled from SKK Migas reports. Overseas shipments have declined in recent years as output is directed to domestic use.
Earlier this week, Prabowo stressed the need to safeguard Indonesia's natural resources and prioritize domestic needs in a speech to cabinet members. Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia echoed the call for economic self-reliance and suggested Indonesia could curb gas exports to "neighboring countries." "If other countries have a different view of us, they should be careful," he told reporters. "I, for one, might consider not extending gas exports to neighboring countries."
Source: Bloomberg Markets · Summarized by HeadlinesBriefing