Indonesia May End Natural Gas Exports to Singapore
The potential shift in 2028 threatens to cut 25% of Singapore's natural gas supply, forcing energy buyers to plan for new volatility.
Updated on Oct. 24, 2026 in Oil and Gas
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Indonesia is evaluating whether to renew natural gas export contracts with Singapore as current agreements reach their expiration by the end of 2028. The move is driven by Indonesia’s need to secure sufficient energy resources to meet its own domestic requirements.
Why it matters
Operators in energy-dependent markets must monitor regional supply shifts, as Indonesia currently provides up to 25% of Singapore's natural gas. The potential expiration of these contracts signals a move toward prioritization of domestic energy security by the Indonesian government.
Indonesia currently supplies up to 25% of Singapore's natural gas, including 3.22 million tonnes delivered in 2025. With these contracts set to expire at the end of 2028, Singapore is working to secure its energy future as LNG already accounts for nearly 60% of its supply.
The players
Bahlil Lahadalia
Indonesia Energy and Mineral Resources Minister responsible for national energy policy and export strategy.
Indonesia
A major Southeast Asian nation and key exporter of natural gas to regional markets.
Singapore
A major regional trade and energy hub that relies on international imports for its natural gas needs.
The details
Minister Bahlil Lahadalia has signaled that Indonesia is reassessing export contracts to ensure internal energy demands are met. To mitigate the risk of a supply shortfall, Singapore is developing a second liquefied natural gas (LNG) terminal to expand its import capacity by the end of the decade. This development highlights the tension between regional export commitments and the growing domestic priority of energy independence.
Timeline
2020: Indonesia announced initial plans to halt gas supply to Singapore.
2022: Indonesia extended existing gas contracts until 2028.
2025: Indonesia delivered 3.22 million tonnes of natural gas to Singapore.
October 21, 2026: Minister Bahlil Lahadalia announced the export contract evaluation.
End of 2028: Singapore's current gas contracts with Indonesia expire.
Market Landscape
This potential shift marks a departure from the stability established by the 2022 extension of Indonesian gas supply contracts to Singapore. It underscores an ongoing trend where energy-exporting nations increasingly prioritize domestic supply security over historical regional trade commitments.
Operators reliant on Southeast Asian energy markets should monitor the status of 2028 contract renewals as a signal for potential volatility in regional gas pricing. Businesses with exposure to Singaporean energy infrastructure should incorporate potential import capacity delays into their long-term supply planning.
The takeaway
Energy security is increasingly driving sovereign export decisions across major producing nations. Operators should track the construction progress of Singapore's second LNG terminal as a key indicator of market resilience heading into the 2028 contract cliff.
Further reading
For broader trends impacting the energy sector, review the Oil and Gas section.
Source note: This article includes information reported by The Independent.
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