Indonesia Considers Ending Natural Gas Exports to Singapore
Indonesia may halt natural gas deliveries to Singapore as current supply contracts approach their expiration in 2028.
Updated on Oct. 24, 2026 in Oil and Gas
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Indonesia is considering a policy to stop renewing natural gas export contracts to its neighbor, Singapore. The decision aims to prioritize domestic energy needs amidst rising supply shortages.
Why it matters
The potential shift threatens to disrupt a significant portion of Singapore's energy supply, forcing the nation to accelerate plans for energy diversification. It underscores the tension between regional export commitments and internal resource security.
Indonesia supplied 3.22 million tonnes of natural gas in 2025, accounting for as much as 25% of Singapore's total intake. Liquefied natural gas currently makes up 60% of Singapore's total gas supply.
The players
Bahlil Lahadalia
He serves as the Indonesia Energy and Mineral Resources Minister and is responsible for overseeing the nation's energy export policies.
The details
Minister Bahlil Lahadalia stated that Indonesia is evaluating its export policies to ensure domestic survival and energy stability. In response, Singapore is expanding its import capacity by constructing a second terminal to manage potential supply fluctuations.
Timeline
2020: Indonesia announced initial plans to halt gas supply to Singapore.
2022: Indonesia extended the existing natural gas supply contract until 2028.
2025: Indonesia delivered 3.22 million tonnes of natural gas to Singapore.
October 21, 2026: Minister Bahlil Lahadalia signaled a potential shift in export renewal policy.
End of 2028: Singapore's current gas supply contracts with Indonesia are set to expire.
Market Landscape
This potential policy pivot follows the 2022 Indonesia-Singapore gas contract extension that provided relative stability for regional energy markets. It forces a realignment in regional dependencies as Singapore seeks to reduce reliance on single-source suppliers.
Singapore's transition toward infrastructure projects like a new LNG terminal may impact long-term utility costs for residents and businesses. Energy consumers in the region should monitor these supply shifts as they may influence utility pricing and energy availability by the end of the decade.
The takeaway
Energy security remains a critical vulnerability for nations reliant on cross-border supply chains. Countries may benefit from proactively investing in infrastructure to diversify import sources before long-term contracts reach their expiration.
Further reading
Learn more about evolving global energy trade dynamics in our Oil and Gas section.
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