SINGAPORE - Singapore’s Gas Supply Pte Ltd (GSPL) and Medco E&P Grissik, a subsidiary of Indonesia’s Medco Energi International (MedcoEnergi), signed off on the extension of a gas sales agreement (GSA) in Jakarta on Friday.
According to a media statement released, the GSA will become effective in August 2023 for a period of five years.
President Director of MedcoEnergi Hilmi Panigoro said: “We are grateful for the continuous support from the Government of Indonesia for the gas supply allocation approval to GSPL. Following the acquisition of the Corridor PSC (gas fields), we believe we can continue to supply gas to meet both domestic and international demand.”
GSPL’s chief executive, Mr Alan Heng, said: “Since 2003, the GSA has been mutually beneficial for both Singapore and Indonesia. This GSA extension is a culmination of the strong trust and relationship built over two decades and the continued confidence in Singapore customers.”
He added: “With the GSA extension, GSPL will continue to meet our customers’ gas needs reliably. I look forward to continuing working with our Indonesian counterparts to deepen our energy cooperation.”
According to its website, GSPL was set up in 2000 as a subsidiary of PowerGas to import natural gas into Singapore.
The GSPL website said the company had signed a gas sales agreement with Indonesian state oil firm Pertamina in February 2001 for the supply of 2.27 trillion standard cubic ft (TCF) of natural gas from South Sumatra. It also noted that the supply agreement, which was valued at US$9 billion (S$12.8 billion), took effect in 2003 and was contracted to run for 20 years.
The GSPL website lists Mr Alan Heng as the company CEO, a position he has held since 2011.
Mr Heng, an energy market veteran who was previously with US energy giant ExxonMobil, was recently appointed by Temasek-backed Pavilion Energy as its group CEO.
Singapore depends on imported gas for about 95 per cent of its electricity needs and is vulnerable to any shifts globally in supply-demand fundamentals.
Analysts said being able to secure long-term supplies provides the Republic with a much-needed medium-term runway of stability at a time of heightened volatility and swelling geopolitical tensions as a result of the Russia-Ukraine war that has severely hit global energy markets.
