By Sohaib Shams
Indonesia has begun reducing its natural gas exports to Singapore, escalating tensions stemming from regional haze caused by Indonesian wildfires. The reduction, which started on Saturday, totals 31 million standard cubic feet per day, including 15 million from the Natuna field in the Riau Islands and 16 million from Sumatra.
Domestic Supply Priorities
Djoko Siswanto, head of the state agency supervising the oil and gas sector (SKK Migas), stated that the decision was made to ensure the reliability of domestic gas supplies for electricity. He noted that developments are being monitored on a daily basis.
Indonesian Energy Minister Bahlil Lahadalia previously signaled that the country might halt supplies to nations that do not show respect to Indonesia. He emphasized that natural resources would prioritize domestic needs, describing the current approach as "survival mode." Additionally, President Prabowo Subianto has ordered investigations into the companies responsible for the fires and has responded to international criticism regarding the crisis.
Impact on Singapore
Singapore's Energy Market Authority (EMA) reported that the reduction represents less than two percent of the city-state's total daily gas demand. The EMA confirmed that contingency plans are in place and expects importers to pursue contractual recourse regarding the supply disruption.
Singapore relies on gas for approximately 95 percent of its electricity. In 2024, Indonesia supplied 145.3 billion cubic feet of gas to the country. Meanwhile, Singapore has served legal notices under its haze laws to 10 Indonesian companies suspected of contributing to the fires.
Regional Environmental Crisis
The wildfires have consumed more than 1.9 million hectares in the nine months leading up to September. The resulting haze has caused acute respiratory illnesses in over 333,470 people across seven Indonesian provinces since mid-August. The smoke has also reached Malaysia and East Timor, prompting the ASEAN regional bloc to call for meetings to address the crisis.
