Indonesia Cuts Gas Supply to Singapore Amid 'Wildfire Dispute'

Amid a diplomatic dispute over raging wildfires, Indonesia has reduced its natural gas exports to Singapore, citing a priority to meet domestic demand.

According to SKK Migas, Indonesia's upstream oil and gas regulatory authority, on the 25th local time, Indonesia began reducing the volume of pipeline natural gas (PNG) supplied to Singapore by 31 million standard cubic feet (SCF) per day starting the previous day.

Joko Siswanto, head of SKK Migas, said in a statement that the measure was intended to maintain the stability of domestic gas supply for power generation, adding that the agency will closely monitor the situation on a daily basis.

He also explained that out of the reduced export volume, 15 million SCF produced in the Riau Islands between Borneo and the Malay Peninsula will be supplied to the nearby data center and tourism hub of Batam, while 16 million SCF from Sumatra will be used to meet electricity demand in Sumatra and other regions.

Joko added that the export reduction will not affect other countries.

A spokesperson for the Singaporean company that imports Indonesian gas said, "The temporary reduction in supply from Indonesia is disrupting gas delivery to customers," and noted that discussions are underway with suppliers and customers to resolve the situation.

Bloomberg reported that the reduction accounts for about 14% of the average volume of gas Indonesia exported to Singapore via pipeline last year.

In response, Singapore's Energy Market Authority (EMA) stated that the reduction amounts to less than 2% of Singapore's total daily gas demand and that domestic energy supplies remain adequate.

It added that contingency plans have been prepared for such situations and that Singapore LNG Corporation is ready to import additional LNG at any time.

Regarding the background of the gas supply reduction, the Indonesian side maintains that it stems from prioritizing domestic consumption.

However, observers suggest that Indonesia's move is not unrelated to the ongoing tensions between the two countries over severe air pollution caused by large-scale wildfires in Indonesia.

Previously on the 21st, Indonesian President Prabowo Subianto criticized countries that "enjoy insulting" his nation regarding the wildfire smoke crisis.

Then on the 22nd, Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia warned that the government was considering restricting gas exports for domestic needs, stating, "We will not hesitate to even consider halting exports to countries that do not respect Indonesia."

"We do not want a situation where they come and beg when needed, yet act like rude relatives when it comes to other issues that require discussion," he said.

However, neither President Prabowo nor Minister Bahlil mentioned any specific countries by name.

As the wildfires on Indonesia's Sumatra and Borneo islands have continued for months, neighboring Singapore and Malaysia have been blanketed in thick smoke, leading to a sharp surge in respiratory patients and high demand for air purifiers and oxygen tanks.

In response, the Singaporean government is considering legal action against Indonesian companies responsible for the wildfires, under its domestic laws penalizing cross-border haze pollution.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.