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.
