Conrad Asia Energy signs key gas sales agreement with Singapore’s Sembcorp
Australian gas junior Conrad Asia Energy (ASX: CRD) has won a contract to supply significant gas reserves to energy-needy Singapore.
The Asia-focused natural gas exploration and development company has signed a binding gas sales agreement (GSA) with Singapore’s Sembcorp Gas for the sale and purchase of the export portion of natural gas from the Mako gas field off the coast of Indonesia.
The agreement is a major milestone for Conrad Asia, which has a 76.5% participating interest in Mako—the largest undeveloped gas field in the West Natuna Sea.
Resources fully committed
The company has already signed a gas sales agreement under a separate domestic market obligation with PGN, Indonesia’s largest gas company.
This means that all of Mako’s current contingent gas resources have been committed to buyers.
The signing of the two sales agreements comes as the Mako joint venture (JV) approaches a final investment decision for the project, targeted for Q4 2024.
‘Essential transition fuel’
Conrad Asia managing director and chief executive officer Miltos Xynogalas said natural gas is an essential transition fuel in the energy mix across Asia and that the sale of all Mako’s contingent gas resources makes it an important project in the region.
“The GSA between the Mako JV, the Indonesian government and Sembcorp is the most significant event in the company’s history, as it has progressed Mako from an exploration concept in 2017 to a gas development project in 2024,” Mr Xynogalas said.
“This is an important step for Conrad in the commercialisation of the Mako gas field and building its gas business in Asia.”
“Conrad has been working closely with Sembcorp for over a year and is delighted to have progressed this to a formal GSA.”
Numerous opportunities
Mr Xynogalas said Mako is one of several gas resources in Conrad’s Asian portfolio as it continues to pursue the development of gas across the region.
“Mako is the first of what we believe will be several gas projects that Conrad aims to bring into commercial production from its existing portfolio, which includes its gas resources in Aceh,” he said.
“Asia has the fastest gas consumption growth in the world as its economies transition away from coal to cleaner-burning natural gas and we are proud to be involved in this transition.”
The Mako field contains 2C contingent resources of 376 billion cubic feet and is scheduled to begin production in 2026.
The West Natuna Sea has been supplying Singapore with natural gas for more than two decades and Mako expects to extend this supply for at least another decade via the existing transportation system.