Sembcorp unit signs S$1.9b agreement to import piped natural gas from Indonesia
SEMBCORP Industries on Monday (Jun 5) announced that its unit Sembcorp Gas has signed a gas sales agreement to import natural gas piped from the West Natuna gas fields in Indonesia at an estimated value of S$1.9 billion.
In a bourse filing, Sembcorp said the agreement supplements its existing natural gas supply from piped and liquefied sources, and will allow the company to maintain its position as Singapore’s leading natural gas importer.
Despite the agreement, the company, however, said it remains “committed to supporting Singapore with a stable and resilient supply of energy in its transition towards a net-zero future”.
The agreement was signed with Medco E&P Natuna, a wholly owned subsidiary of Medco Energi Internasional.
It is expected to take effect by the second half of the year, conditional upon the necessary agreements to transport the new gas supply.
Delivery is expected to start from next year, Sembcorp said, for a tenure of four years.
The company, meanwhile, said the signing of the sales agreement is in its ordinary course of business, and is not expected to place any material impact on its earnings per share and net tangible assets per share for the financial year ending Dec 31, 2023.
Sembcorp shares closed up 3.1 per cent at S$5.35 on Monday, before the announcement.
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