Singapore’s pipeline gas from Indonesia under question as Jakarta weighs not renewing contracts

Indonesia is considering whether to renew gas export agreements with neighbouring countries, including Singapore. The concern matters because Singapore relies partly on imported gas for its energy system. Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia said domestic demand should be met before gas is allocated overseas.

Singapore’s current gas contracts with Indonesia expire at the end of 2028. Bahlil said Indonesia was considering not renewing export contracts and could review supplies to countries it considered “uncooperative and disrespectful”. He did not name a specific country in those remarks.

The article does not say that Singapore’s contracts will definitely end. It says Indonesia is weighing the option. Singapore has an LNG terminal and imports gas from markets worldwide, which could help it respond if Indonesian pipeline supplies are not renewed.

Pipeline natural gas is gas delivered through connected underground or underwater pipelines. It moves continuously from a nearby producing country to the importing country. This arrangement depends on physical links and contracts between specific suppliers and buyers.

LNG, or liquefied natural gas, is natural gas cooled until it becomes a liquid. It can then be loaded onto ships, carried across oceans, and warmed back into gas at an import terminal. Singapore’s LNG terminal began operating in 2013 and allows imports from suppliers around the world.

The main difference is delivery method. Pipeline gas usually comes from nearby countries, such as Indonesia or Malaysia. LNG can come from many global markets, so it gives Singapore more sourcing options. However, LNG requires ships, storage, and specialised terminals, while pipeline gas uses existing cross-border infrastructure.

Singapore gets 40 per cent of its natural gas supply through pipelines from Malaysia and Indonesia, according to the Energy Market Authority. This makes those two neighbours important parts of Singapore’s energy supply, even though neither country alone accounts for more than 30 per cent of Singapore’s gas imports.

The rest of Singapore’s supply is shipped in from markets worldwide. LNG makes up close to 60 per cent of the country’s total natural gas supply. Singapore’s LNG terminal, which opened in 2013, supports this global sourcing model. A second terminal was being built to increase import capacity.

These figures show that Singapore already uses a mixed supply system. Pipeline gas provides a major regional source, while LNG offers access to international suppliers. The article does not break the 40 per cent pipeline share into separate percentages for Indonesia and Malaysia.

Indonesia is considering prioritising domestic gas demand because its government wants national needs met before supplies are exported. Energy and Mineral Resources Minister Bahlil Lahadalia linked the approach to President Prabowo Subianto’s directive for Indonesia to adopt a survival-oriented policy.

The policy responds to geopolitical tensions and global energy challenges. Bahlil said Indonesia was considering not renewing gas export contracts with neighbouring countries. He later said exports could be reviewed for countries Indonesia viewed as “uncooperative and disrespectful”, although he did not name one.

This approach could make future regional gas supplies less predictable. It does not mean Indonesia has cancelled Singapore’s contracts. The current contracts expire at the end of 2028, leaving time for negotiations and for Singapore to rely on LNG, additional import capacity, and other energy sources.

If Indonesian pipeline exports are not renewed, Singapore would lose one regional source of natural gas. Because gas is central to Singapore’s energy supply, replacing that volume could require more LNG purchases and careful contract planning. The article does not say that electricity shortages or higher prices would definitely follow.

LNG can be shipped from markets worldwide, and Singapore already gets close to 60 per cent of its gas supply as LNG. However, replacing pipeline gas with seaborne cargoes may increase exposure to international prices, shipping costs, and competition for available supplies. These are established energy-market risks, not figures provided in the article.

Singapore’s energy security would depend on how successfully it replaces the volumes. Its existing LNG terminal, planned second terminal, solar expansion, and Singapore GasCo could provide flexibility. The article does not state the likely price or electricity impact.

Singapore has several ways to reduce reliance on Indonesian pipeline gas. It can import more LNG from global markets, expand receiving capacity, increase solar generation, and coordinate purchases through Singapore GasCo. Together, these options diversify both suppliers and energy sources.

Singapore’s LNG terminal began operating in 2013, and a second terminal was being built to boost import capacity. LNG can arrive by ship from markets worldwide. Singapore also reached at least 2 gigawatt-peak of solar capacity ahead of its 2030 deadline and raised the target to 3 gigawatt-peak.

Singapore GasCo was established in 2025 as a central gas aggregator. Its role is to ensure the country remains adequately contracted for natural gas at all times. These measures do not replace Indonesian gas automatically, but they can give Singapore more supply choices if contracts expire without renewal.

Natural gas matters to Singapore because the country relies heavily on it for energy. The article gives no exact share for gas-fired electricity, but it shows gas is a major national supply: pipelines provide 40 per cent of natural gas, while LNG provides close to 60 per cent.

In a gas-fired power plant, natural gas is burned to release heat. That heat can create high-pressure gases that spin a turbine connected to a generator. In some plants, exhaust heat also produces steam for another turbine. The generator converts the turbine’s motion into electricity for the grid.

Singapore’s LNG terminal, planned second terminal, solar expansion, and Singapore GasCo all support supply resilience. Gas-fired plants can use pipeline gas or regasified LNG. The article does not describe the power-generation mechanism, so this technical explanation uses established energy knowledge.