Conrad Asia Energy, an Australian gas exploration and development company listed on the ASX under ticker CRD, has secured a significant contract to supply natural gas to Singapore. The company has signed a binding gas sales agreement (GSA) with Singapore’s Sembcorp Gas, covering the export of natural gas from the Mako gas field off the coast of Indonesia. This agreement marks a major milestone for Conrad Asia, which holds a 76.5% interest in Mako, the largest undeveloped gas field in the West Natuna Sea.
The Mako gas field has now fully committed its contingent gas resources to buyers, following a previous GSA with Indonesia’s largest gas company, PGN. These agreements underscore the strategic importance of the Mako field as Conrad Asia and its joint venture (JV) partners approach a final investment decision, expected in Q4 2024.
Miltos Xynogalas, Conrad Asia’s Managing Director and CEO, highlighted the crucial role of natural gas as a transition fuel in Asia’s energy mix. He noted that the successful sale of Mako’s contingent gas resources emphasizes the project’s regional significance. Xynogalas described the GSA with Sembcorp as a pivotal moment in Conrad Asia’s history, transforming Mako from an exploration concept in 2017 into a gas development project by 2024. He also commended the strong collaboration with Sembcorp over the past year, which led to the formal GSA.
Looking beyond Mako, Conrad Asia is focused on developing additional gas resources in its Asian portfolio, including projects in Aceh. Xynogalas pointed out that Mako represents just the beginning of a series of gas projects that the company anticipates will enter commercial production, contributing to the region’s transition from coal to cleaner-burning natural gas.
The Mako field, with 2C contingent resources estimated at 376 billion cubic feet, is scheduled to start production in 2026. The West Natuna Sea, a vital natural gas supplier to Singapore for over two decades, is expected to maintain this supply for at least another decade, with the Mako field playing a key role in extending this relationship through existing transportation infrastructure.
