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.