Sembcorp Fuels, a wholly-owned subsidiary of Singapore’s Sembcorp Industries, has signed a long-term liquefied natural gas (LNG) sale and purchase agreement (SPA) with the Singaporean branch of U.S.-headquartered energy giant Chevron.
Under the 10-year deal, Chevron is set to import up to 0.6 million tonnes per annum (mtpa) of LNG from Sembcorp, with delivery scheduled to start in 2028.
Freeman Shaheen , President at Chevron Global Gas, noted that the agreement with the Singaporean firm underscores his company’s commitment to delivering affordable, reliable, ever-cleaner energy that meets the needs of customers and progresses energy security and emissions reduction goals.
“This agreement is a step forward in diversifying Sembcorp’s existing natural gas portfolio of piped and liquefied sources globally. By forging strategic partnerships, we will continue enhancing our capacity to support our customers in Singapore by providing them with a secure and competitive supply of power and gas throughout the energy transition,” said Vickrem Vijayan , Head of Energy Commercial at Sembcorp.
Last month, Chevron sold a 23% interest in the concession agreement for the North El-Dabaa (H4) block in the Mediterranean Sea offshore Egypt to QatarEnergy. The U.S. major will retain a 40% interest and stay on as operator, cooperating with partners Woodside (27%), and Tharwa Petroleum Company (10%).
Meanwhile, Sembcorp’s affiliate Sembcorp Utilities is working on what is said to be Southeast Asia’s largest green hydrogen development initiative . In October, the firm signed a joint development agreement (JDA) with Indonesian state-owned utility company PT PLN (Persero) to advance their green hydrogen production project in Sumatra, Indonesia.