With the new year approaching quickly, the energy market is seeing more gas projects reaching critical phases. As the sector serves as a great transitional resource for the global energy market, it aims to slowly phase out coal production. Now, a major Australian energy major with a specific focus on Asia’s energy market, Conrad Asia Energy, is moving forward towards a final investment decision on a major Indonesian gas development, as well as reaching a crucial milestone to supply Singapore with gas from the same field in Indonesia.
Conrad has signed a gas sales agreement with Indonesia’s state-owned Pertamina
In a world that has been dominated by calls to increase the development of gas resources, some nations are turning to long-term gas supply agreements with major energy companies as the new year brings with it new challenges in meeting energy demand.
Conrad Asia has been operating in the region for an exceedingly long time and boasts vast experience in developing gas projects. Now, Conrad has signed an initial gas sale agreement with Perusahaan Gas Negara (PGN), the gas subsidiary of Pertamina in Indonesia.
The agreement comes as Conrad commits to selling the domestic share of gas from the Mako field in the West Natuna Sea offshore Indonesia. Indonesia will get approximately 30% of the gas produced on site, with a large sum being committed to sales in Singapore. This underscores Conrad’s commitment to serving the Asian energy market.
The Mako field in Indonesia represents a new future for the gas sector in the region
The Mako field in Indonesia contains contingent resources of 413bn ft³ (11.7bn m³) of sales gas, of which 215bn ft³ is net to Conrad. The GSA between Conrad and PGN is subject to a gas pipeline being built, linking the West Natuna transportation system to the domestic gas market at the port of Batam. The remainder of the gas produced on site will be earmarked for Singapore, in what energy experts in the nation call the most important gas development in the country’s history
Conrad has also signed a binding gas sales agreement with Singapore
The Australian energy major has also recently signed a binding gas sales agreement with Singapore’s Sembcorp Gas for the remainder of the gas produced in the Mako fields in Indonesia. The new deal is a major milestone for the company, as it owns a 76% stake in the Mako field, which is the largest undeveloped gas field in the West Natuna Sea.
As several European nations are set to commission new gas and oil projects this year, Asia’s gas sector will be crucial in the international transition ambitions of the global market, as noted by Conrad’s CEO.
“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. 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.” – Conrad Asia managing director and chief executive officer Miltos Xynogalas
The gas and LNG sector has been growing at an astonishing rate
Conrad’s move toward a final investment decision on the Mako field comes as other nations that formerly relied on imports are seeing their gas sectors booming in recent months, such as Suriname, which recently saw PETRONAS reach a major development step in Suriname’s inaugural gas project, marking a new era of gas production and sales across the world. Gas is a perfect transition resource as the world aims to do away with the reliance on oil and coal production.
