For more than 20 years, natural gas from Indonesia has flowed to Singapore through two underwater pipelines. Now, that flow is beginning to slow.
On October 24, 2026, Indonesia began cutting its gas deliveries to Singapore by 31 million standard cubic feet per day (MMscfd). This is equivalent to around 8 percent of Indonesia's total pipeline gas supply to the country, which stands at 409.55 MMscfd.
The reduction comes from two regions, Natuna and Sumatra. Djoko Siswanto, head of Indonesia's upstream oil and gas regulator SKK Migas, said the cuts amounted to 15 and 16 billion British thermal units per day (BBTUD), respectively.
Meanwhile, Energy and Mineral Resources Minister Bahlil Lahadalia put the total reduction at 31 MMscfd. He said the gas would be prioritised for domestic needs, including as a raw material for the petrochemical industry.
Even so, Indonesia's cut represents less than 2 percent of Singapore's daily gas demand. So, how significant is Indonesia's role in supplying its neighbour, and how did this gas trade relationship begin?
Two Pipelines Connecting Indonesia and Singapore
The first pipeline is the West Natuna Transportation System, an underwater route stretching around 654–656 kilometres from gas fields in the West Natuna Sea to Singapore. The first gas shipment arrived in Singapore on January 3, 2001. Twelve days later, Indonesian President Abdurrahman Wahid and Singaporean Prime Minister Goh Chok Tong officially inaugurated the pipeline.
The second pipeline followed on August 4, 2003. Stretching around 470 kilometres, it connects Grissik in South Sumatra to Singapore through Batam. The project was a joint venture between Indonesia's state-owned gas company, PT Perusahaan Gas Negara (PGN), and Singapore's PowerGas Ltd. Its supply came from several gas blocks in Sumatra, including Corridor, South Jambi, and Jabung.
Both projects were expected to generate substantial revenue for Indonesia. During the inauguration of the Sumatra pipeline in 2003, estimates put the potential revenue from the Natuna pipeline at around US$8 billion over 22 years, while the Sumatra pipeline was expected to generate another US$9 billion over 20 years. Together, the two projects were projected to bring in around US$17 billion.
The Sumatra project was also expected to create more than 700 jobs in pipeline operations and maintenance. It later became part of the Trans-ASEAN Gas Pipeline initiative, a regional network designed to connect gas supplies across Southeast Asia.
Gas Exports Peaked in 2017, Then Declined
Indonesia's gas exports to Singapore remained above 4 million tonnes annually between 2010 and 2016. They reached a peak of 7.65 million tonnes in 2017, before declining for eight consecutive years. By 2025, the volume had fallen to 3.22 million tonnes, accounting for around 23 percent of Indonesia's total gas exports.
The Indonesian government has also outlined plans to end pipeline gas exports to Singapore. In April 2025, the head of SKK Migas said the exports were scheduled to end in 2028. The agency was also studying the possibility of a moratorium afterward.
How Much Gas Is Being Cut?
According to Bahlil at a press conference on October 26, 2026, Indonesia currently sends a total of 409.55 MMscfd of natural gas to Singapore through its pipelines. The 31 MMscfd reduction therefore represents around 8 percent of that supply.
Bahlil said the reduction remains within the limits of the existing contracts. According to him, cutting supplies by 10 percent would violate the contractual terms. He cited well maintenance and growing domestic demand as the reasons behind the decision.
What Does This Mean for Singapore's Gas Supply?
Indonesia's decision to reduce gas deliveries has prompted a response from Singapore. Prime Minister Lawrence Wong called on all parties to honour their existing commitments. According to The Straits Times, he said Singapore's gas importers would take steps to protect their contractual rights.
However, the scale of the reduction puts its immediate impact into perspective. Singapore's Energy Market Authority said the 31 MMscfd cut represents less than 2 percent of the country's daily gas demand, which exceeds 1,000 BBTUD.
Even so, Indonesia remains part of Singapore's gas supply network. Natural gas accounts for most of the country's electricity generation, and some of its supply comes through pipelines from Indonesia. To diversify its sources, Singapore is also building facilities to import liquefied natural gas (LNG).
This makes the latest reduction part of a broader shift in the two countries' gas trade relationship. Although gas continues to flow through the pipelines inaugurated in 2001 and 2003, Indonesia has scheduled an end to its pipeline gas exports to Singapore in 2028.
