Sembcorp unit signs 10-year LNG supply deal with Chevron

A SEMBCORP Industries wholly-owned subsidiary, Sembcorp Fuels, has signed a 10-year sale-and-purchase agreement with oil major Chevron Corp for about 0.6 million tonnes of liquefied natural gas (LNG) each year. 

Delivery is expected to commence in 2028, said the group in a bourse filing on Thursday (Dec 5). 

It said its agreement with Chevron will strengthen its existing natural gas supply portfolio of piped and liquefied sources from across the world. “As a key natural gas importer for Singapore, Sembcorp is committed to supporting the country with a stable and resilient supply of energy.” 

The group does not expect the sale-and-purchase agreement to have a material impact on its earnings per share and net tangible assets per share for the financial year ending Dec 31. 

Shares of Sembcorp closed at S$5.65 on Thursday, up 2.7 per cent or S$0.15, before the news.