Release: Sembcorp seals gas deal worth US$5.5 billion
Tuesday, April 15 2008 - 11:52 AM WIB
Sembcorp Gas signed the conditional GSA with Premier Oil and its co-venturers, KUFPEC, Hess and PETRONAS for the supply and delivery of natural gas piped from Natuna Sea Block A off Indonesia, operated by Premier Oil.
Mr Tang Kin Fei, Group President & CEO of Sembcorp Industries and Chairman of Sembcorp Gas, said, ?The import of additional gas will allow us to meet growing customer needs on Jurong Island and it will enlarge our earnings base and provide the platform for the future growth of our energy and centralised utilities business.
?The conclusion of this second GSA reinforces Sembcorp's position as a lead gas player in Singapore and will further enhance Sembcorp?s competitive position for the supply of steam for new demand in Jurong Island. Gas delivery is targeted to commence sometime between 2010 and 2011.
?Together with the gas contracted under the gas sales agreement signed in 1999, Sembcorp will be importing about 470 BBtu of gas daily. Worldwide, Sembcorp operates more than 3,300 megawatts power generation capacity through power plants located in Singapore, Vietnam, Fujairah in the UAE, and the UK.?
Sembcorp's additional gas import is primarily intended for the production of additional steam to meet growing demand in Jurong Island. In addition, gas has already been committed for sale to support new chemical and petrochemical investments in the area. The gas will be transported into Singapore through the existing gas pipeline system from the West Natuna Sea to Sembcorp's Receiving Terminal located at Sakra, Jurong Island.
The GSA becomes effective when the necessary agreements to transport this additional tranche of gas through the existing gas pipeline system within Indonesian waters are concluded. This is expected to be concluded by the third quarter of 2008.(end of release)