Singapore gas buyer sees continued Indonesian role despite export warning

Indonesia will remain an important partner in Singapore’s energy security, Singapore GasCo chief executive Alan Heng told The Business Times on Oct 23, following Indonesian warnings about possible changes to energy exports.

Indonesia’s Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said gas export agreements with neighbouring countries might not be renewed. He later raised the possibility of stopping energy exports to unnamed countries he regarded as disrespectful towards Indonesia. Heng did not respond directly to those comments, but said cooperation with regional partners would continue.

Singapore uses natural gas to produce 95 per cent of its electricity and received 3.22 million tonnes from Indonesia in 2025. That year, piped gas supplied by Indonesia and Malaysia represented 43 per cent of Singapore’s gas imports, with liquefied natural gas (LNG) accounting for 57 per cent.

Lee Rou Urn, Argus Media’s Asia LNG pricing analyst, said limits on Indonesian supply could eventually increase electricity prices. The impact would vary with the length of any disruption and the price of replacement gas.

In Lee’s assessment, Singapore is likely diversified enough to cope with a short-term escalation. She cited available LNG storage of as much as 11 million tonnes per year and a standby LNG facility for power generators during a crisis. Prolonged or indefinite restrictions, however, could prompt a reassessment or further diversification of LNG suppliers, she said.

Heng said GasCo combines spot purchases with contracts of varying durations across suppliers and regions. Its inaugural long-term LNG buying exercise seeks supplies for periods of up to 10 years, with deliveries beginning in 2029.

McKinsey partner Rajat Agarwal said Singapore’s infrastructure allowed further supply diversification, and noted that regasification and storage capacity was being expanded by the decade’s end.