Jakarta. Indonesia's reduction in pipeline gas exports to Singapore remains within the limits permitted under existing supply contracts, Energy and Mineral Resources Minister Bahlil Lahadalia said Thursday, dismissing concerns that the move could violate the country's contractual commitments.

Bahlil said the government had reduced pipeline gas deliveries by 31 million standard cubic feet per day, equivalent to approximately 8% of the previously reported export volume of 409.5 million standard cubic feet per day.

According to the minister, the reduction remains below a 10% threshold that he said would trigger a contractual violation.

"We have not exceeded the minimum contractual limit, so there is actually no problem," Bahlil told reporters at the Presidential Palace in Jakarta.

The reduction was introduced to prioritize domestic energy requirements, particularly those of power plants and industrial users, amid constraints on natural gas production.

According to the Energy and Mineral Resources Ministry, output from several gas wells has declined because of scheduled maintenance, prompting the government to redirect part of the available supply toward domestic consumers.

Bahlil maintained that Indonesia remained committed to fulfilling its gas supply obligations to Singapore as long as adjustments stayed within the terms of the relevant agreements.

The minister's explanation comes amid questions over the implications of Indonesia's decision to reduce gas exports to its neighboring country, which relies on imported natural gas for a significant share of its energy needs.

In addition to pipeline gas, Indonesia also supplies liquefied natural gas (LNG) to Singapore. Bahlil cited a figure of 148 LNG cargoes shipped from Indonesia, although the reporting period was not specified.

He also suggested that not all Indonesian LNG delivered to Singapore was necessarily consumed domestically, raising the possibility that some shipments could be traded onward to other countries.

However, the minister did not provide evidence identifying specific shipments that had been re-exported.

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