Singapore-RI gas project registers full advance sales
Singapore-RI gas project registers full advance sales
SINGAPORE (AFP): Singapore conglomerate SembCorp Industries on Monday said the supply of gas from a multi-billion-dollar deal with Indonesia had all been bought up in advance by occupants of a major petrochemical complex here.
SembCorp Industries, through its unit Sembawang Gas, is among the investors in an eight-billion-U.S-dollar venture that will bring gas from Indonesia's West Natuna Sea gas field to Jurong Island off Singapore, which the government is developing into a major petrochemical complex.
The deal signed with Indonesia's state-run firm Pertamina in January allows Sembawang Gas to procure 325 million cubic feet (9.75 million cubic meters) a day of gas from West Natuna to Jurong.
"We are progressing well here. The project is comfortably on schedule and all 325 million standard cubic feet per day of this gas has been sold" in advance, said SembCorp Industries' chief executive officer Wong Kok Siew.
Wong was speaking at a ceremony to mark the construction of Sembawang Gas's receiving terminal and the opening of a utility and waste management facility for 17 petrochemical companies on Jurong Island.
"Being the first commercial importer of natural gas into Singapore, (Sembawang Gas) is able to contribute to the development of this industry in Singapore by providing a cleaner and more efficient source of fuel," he said.
Another SembCorp Industries unit, SembCogen, will use the natural gas from the pipeline to supply electricity and steam for Jurong Island and electricity for the national grid, he added.
Officials said SembCogen would begin using the gas from West Natuna from April 15, 2000 and that there was no penalty for any delay in the delivery of gas until July 15, 2000.
Wong said the projects involving Sembawang Gas, SembCogen and the utility and waste management facility represented investments of more than one billion Singapore dollars (588 million US).
Meanwhile, another unit of SembCorp Industries, Sembawang Engineering Pte. Ltd., said it hoped to conclude a deal to provide gas to utility firm Singapore Power Ltd. within the third quarter of the year.
Singapore Power is the main supplier of electricity and piped gas in Singapore.
The petrochemical and chemical industries are a key component of Singapore's manufacturing sector.