Indonesian regulators will redirect export-bound pipeline gas from private producer Medco to PGN, leaving Singapore's pipeline buyers exposed.

On October 2nd, Indonesia’s Investment Agency began reviewing a full merger of state carriers PGN and Pertagas to run pipelines and city gas as one entity. This creates a single gatekeeper because private producers need state pipelines and the new mandate favours domestic gas. Private producer, Medco, is particularly exposed because its Sumatra export gas rides the Grissik–Singapore pipeline that PGN controls. Regulators diverted 27 billion BTU a day of Medco's export gas to PGN in August 2025 and withheld new LNG export approvals in April 2026. As a result, Medco is likely to surrender more leverage and volume to PGN, which would resell it to Indonesian power and industry. That leaves Singapore chasing costlier US, Qatari and Australian LNG.