The delivery of the fuel is expected to start from 2026 for a tenure of about 11 years
SEMBCORP Gas, a wholly owned subsidiary of Sembcorp Industries, has signed a gas sales agreement to import up to 111 billion British thermal units per day of natural gas piped from the Mako gas fields in Indonesia.
On Monday (Sep 2), Sembcorp said the agreement will allow its piped natural gas supply to last beyond 2028 to meet the energy needs of its customers.
The deal was signed with West Natuna Exploration, Empyrean Energy and Coro Energy Duyung (Singapore).
It is expected to take effect by the first half of 2025, subject to a final investment decision by the three companies for the Mako gas fields, as well as necessary agreements and regulatory approvals.
Delivery is expected to start from 2026 for a tenure of about 11 years, added Sembcorp.
The company also noted that it does not expect the agreement to have a material impact on its earnings per share and net tangible assets per share for the current financial year.
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The agreement comes after Sembcorp Gas signed a non-binding term sheet with West Natuna Exploration, a wholly owned subsidiary of Conrad Asia Energy, in September 2023. The term sheet outlined key terms and a framework for the gas sales deal for the Mako gas fields.
Last June, Sembcorp Gas also signed a sales agreement – worth about S$1.9 billion – to import natural gas piped from the West Natuna gas fields in Indonesia.
The agreement, which was signed with Medco E&P Natuna, supplements Sembcorp’s existing natural gas supply from piped and liquefied sources, said the company.
Shares of Sembcorp rose 4.4 per cent or S$0.21 to close at S$4.93 on Friday.
