Singapore PM Urges Compliance with Commercial Contracts After Indonesia Gas Cut

Singapore PM Urges Compliance with Commercial Contracts After Indonesia Gas Cut
An illustration of the Singaporean government's response regarding the reduction in Indonesian gas exports. (AI-generated)

Jakarta, en.SERU.co.id – Singapore Prime Minister Lawrence Wong asked all parties to comply with commercial contracts following the reduction of Indonesia’s gas exports. Singapore’s energy authority said the supply reduction is less than two percent of daily needs and has prepared anticipatory steps. Singapore is also expanding LNG import options and studying nuclear power to strengthen energy resilience.

Wong affirmed that Singapore’s gas importers will take the necessary steps. Especially to protect their rights and interests according to the applicable contracts.

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The statement was delivered amid Indonesia’s policy of diverting part of the gas supply. Which was previously exported to meet domestic energy needs. However, the Singapore Energy Market Authority (EMA) assessed that the impact of the supply reduction is still relatively limited.

“The supply reduction received by importers reaches 17 billion British thermal units per day (BBTUD) during an 18-day period. That figure is less than 2 percent of Singapore’s total daily gas needs which exceed 1,000 BBTUD,” said an EMA spokesperson, as quoted from CNBC Indonesia on Sunday, October 25, 2026.

EMA also stated that it already has emergency plans to face supply disruptions. In recent months, Singapore is said to have experienced gas supply reductions ranging from 20-100 BBTUD due to planned or urgent maintenance.

According to EMA, previous supply shortages could be overcome by bringing in gas from other sources. Singapore’s gas management company, Singapore GasCo, is said to be ready to increase liquefied natural gas (LNG) imports according to needs.

In addition to relying on supplies from Indonesia, Singapore imports gas from various countries. Power plants in the country are also required to have adequate fuel reserves. Including diesel oil to maintain national energy sufficiency.

Indonesia Prioritizes Domestic Needs

As previously reported, the Indonesian government has begun diverting part of the natural gas supply that was originally intended for export to Singapore. The policy effective since Saturday, October 24, 2026, is aimed at strengthening domestic energy supply. Especially for electricity needs in Batam, Bintan, and Sumatra.

The diversion of the supply targets gas from the Natuna and Sumatra pipeline routes. The government called this step part of efforts to prioritize domestic energy needs amid attention to national supply resilience.

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Singapore Opens Nuclear Energy Option

Amid energy supply challenges, Wong affirmed that Singapore needs to expand energy source options so as not to depend too much on natural gas. One option being seriously studied is the utilization of nuclear power.

Wong acknowledged that the application of nuclear technology raises safety issues. Especially because Singapore’s territory is relatively small and densely populated. According to him, the risks and benefits of that technology need to be carefully assessed before the government takes a decision.

As part of the study process, Singapore plans to invite the International Atomic Energy Agency (IAEA) in 2027. Especially to review the country’s readiness in adopting nuclear power. That assessment will cover 19 aspects, including nuclear safety and emergency response planning.

Wong also emphasized the importance of cross-country cooperation in facing issues that cannot be resolved independently. Including online fraud and transboundary haze. (aan/mzm)

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