Sembcorp Gas, a wholly-owned subsidiary of Sembcorp Industries (Sembcorp) terminates its gas sales agreement (GSA) to import up to 111 billion British thermal units per day of natural gas piped from the Mako gas fields in Indonesia.
Sembcorp says that the GSA was subject to regulatory approvals, which had not been obtained. The GSA was first signed on Sept 2, 2024 with West Natuna Exploration, Empyrean Energy and Coro Energy Duyung (Singapore).
The agreement was meant to allow piped natural gas supply to last beyond 2028. However, Sembcorp says the termination will not affect its energy costs or ability to meet gas supply requirements in Singapore.
“Sembcorp will continue to leverage its network of natural gas sources, including liquefied natural gas, to fulfill demand,” the March 13 release reads.
In June 2023, Sembcorp Gas also signed a sales agreement worth about $1.9 billion to import natural gas piped from the West Natuna gas fields in Indonesia. The agreement was signed with Medco E&P Natuna.
Shares in Sembcorp closed 4 cents higher or 0.661% up at $6.09 on March 13.
