Sembcorp Industries signs Indonesian gas trade deal
JAKARTA, June 7, 2023 – Sembcorp Industries has signed a USD 1.41-billion gas sales agreement with local independent Medco Energi Internasional to import gas from an offshore play in Indonesia to Singapore, the Singaporean energy and urban development player announced on Monday.
Gas will be sourced from the West Natuna gasfield and will be shipped to Singapore via the West Natuna–Singapore gas pipeline.
Subject to transport agreements, the contract is expected to be effective by H2 2023. Shipping is expected to begin from 2024 and carry on over a four-year period.
The 656-kilometre shallow-water pipeline has a maximum diameter of 102 centimetres. It began operations in 2001.
Medco Energi Internasional operates the pipeline with a 25% stake.
Sembcorp Industries is Indonesia’s largest gas importer.