Indonesia cut natural gas supplies to Singapore on 24 October, diverting 31 million standard cubic feet per day to domestic electricity supply in Batam, Bintan and Sumatra, according to the government. The reduction, it said, remained within the contractual minimum. Singapore said its importers would examine possible contract breaches and use contractual mechanisms to respond.
The government said the cut was made to keep the lights on. Power in Batam and cities in the Riau Islands had been out for 16 hours in early October. Energy Minister Bahlil Lahadalia had warned two days before the cut that energy exports could be evaluated against countries deemed not to respect Indonesia.
Singapore’s response
Singapore authorities said the reduction amounted to less than 2 percent of the city-state’s daily gas needs. They said they have alternative supply, including liquefied natural gas. The Ministry of Energy and Mineral Resources has not described the move as a diplomatic punishment.
The cut followed tensions over transboundary haze. Jakarta has not officially linked the two issues.
Gas prices
Natural gas was quoted at $2.655 in our own measurement as of 23:27 GMT on 1 November, near its 31-day low.
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Source: Ministry of Energy and Mineral Resources | Data: FRED — St. Louis Fed
