[SINGAPORE] A deal inked by one of Sembcorp Industries’ subsidiaries to import natural gas from Indonesia has fallen through after regulatory approval was not obtained.
The agreement, first announced in September 2023, was between Sembcorp Gas, West Natuna Exploration, Empyrean Energy and Coro Energy Duyung to import up to 111 billion British thermal units per day of piped natural gas from the Mako gas fields in Indonesia.
Gas delivery was anticipated to commence from 2026, had the deal gone through.
Sembcorp said on Thursday (Mar 13): “The gas sales agreement was subject to regulatory approvals as a condition precedent. As regulatory approval in Indonesia has not been obtained, the gas sales agreement will accordingly be terminated…
“This will not affect Sembcorp’s energy costs or its ability to meet gas supply requirements in Singapore. Sembcorp will continue to leverage its network of natural gas sources, including liquefied natural gas, to fulfil demand.”
It added that the announcement 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, 2025.
In June 2023, Sembcorp Gas also signed an agreement worth about S$1.9 billion with Medco E&P Natuna to import natural gas from the West Natuna gas fields in Indonesia.
The agreement supplements Sembcorp’s existing natural gas supply from piped and liquified sources.
Shares of Sembcorp Industries closed 0.7 per cent or S$0.04 higher at S$6.09 on Thursday, before the announcement.
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