Singapore's Sembcorp Industries scraps Indonesia gas deal due to regulatory snags
Sembcorp Industries has terminated its gas sales deal to import piped natural gas from Indonesia's Mako gas fields due to regulatory hurdles. The company stated that it did not receive the necessary approvals from Indonesia, but this will not impact its energy costs or gas supply in Singapore. Sembcorp will rely on its own natural gas sources instead. The deal, signed last September, aimed to import up to 111 billion British thermal units per day. Sembcorp's gas segment reported a 10% drop in annual profit earlier this year.
March 13 (Reuters) - Singapore’s utilities firm Sembcorp Industries (SCIL.SI) said on Thursday it has terminated the gas sales deal its unit had signed to import piped natural gas (PNG) from the Mako gas fields in Indonesia, citing regulatory hurdles.
The Temasek Holdings-backed firm said it failed to receive the required regulatory nods from Indonesia to go ahead with the agreement.
“This will not affect Sembcorp’s energy costs or its ability to meet gas supply requirements in Singapore” and will not have any material impact on earnings per share for 2025, it said in a statement.
Sembcorp would instead utilize its own natural gas sources, including liquefied natural gas, to fulfill its needs.
Last year in September, Sembcorp’s unit, Sembcorp Gas Pte had inked a deal with three firms to import up to 111 billion British thermal units per day of PNG. The firms included West Natuna Exploration - a subsidiary of Indonesia-based Conrad Asia, London-listed oil and gas explorer Empyrean Energy PLC (EMEL.L) , and energy firm Coro Energy Duyung (Singapore) Pte.
Sembcorp, which provides energy and urban solutions, saw its biggest earner - gas and related services segment report a 10% drop in its annual profit, earlier in February.
