Sembcorp Industries’ wholly-owned subsidiary, Sembcorp Gas, has signed a gas sales agreement (GSA) with West Natuna Exploration, Empyrean Energy and Coro Energy Duyung (Singapore) to import up to 111 billion British thermal units per day of piped natural gas (PNG) from the Mako gas fields in Indonesia.
According to a Sept 2 bourse filing, the GSA is expected to be effective by 1H2025. This is subject to the three sellers’ final investment decision and the necessary regulatory approvals.
Gas delivery is anticipated to commence from 2026 and has an expected tenure of approximately 11 years.
This follows Sembcorp’s Sept 12, 2023 announcement that it had signed a non-binding term sheet with West Natuna Exploration for a binding GSA for the Mako gas field.
This GSA extends the security of Sembcorp’s existing PNG supply beyond 2028 to meet the energy needs of Sembcorp’s customers.
“As Singapore’s leading natural gas importer with a diversified gas supply from piped and liquefied sources, Sembcorp is committed to supporting the country with a stable and resilient supply of energy,” reads Sembcorp’s announcement.
See also: Sembcorp signs non-binding term sheet for gas sales agreement
The signing of the GSA is in the ordinary course of business of Sembcorp and is not expected to have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending Dec 31.
Shares in Sembcorp closed 21 cents high, or 4.45% up, at $4.93 on Aug 30.
