Conrad Asia Energy, an Australian gas exploration and development company listed on the ASX under the ticker CRD, has secured a significant contract to supply natural gas to Singapore, marking a major milestone in its operations. 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 located off the coast of Indonesia. This agreement represents a critical step forward for Conrad Asia, which holds a 76.5% participating interest in Mako, the largest undeveloped gas field in the West Natuna Sea.
The Mako gas field has now fully committed its current contingent gas resources to buyers, with Conrad Asia having previously signed another GSA under a domestic market obligation with Indonesia’s largest gas company, PGN. These agreements highlight the strategic importance of the Mako field as the joint venture (JV) partners edge closer to a final investment decision, expected in the fourth quarter of 2024.
Miltos Xynogalas, Conrad Asia’s Managing Director and Chief Executive Officer, emphasized the role of natural gas as an essential transition fuel in the energy mix across Asia. He stated that the successful sale of all of Mako’s contingent gas resources underscores the project's significance in the region. Xynogalas described the GSA with Sembcorp as the most pivotal event in Conrad Asia's history, transforming Mako from an exploration concept in 2017 into a gas development project by 2024. He also highlighted the strong collaboration between Conrad and Sembcorp over the past year, which culminated in the formal GSA.
Beyond the Mako project, Conrad Asia is focused on developing other gas resources across the region, particularly within its Asian portfolio. Xynogalas pointed out that Mako is just the beginning of what the company anticipates will be a series of gas projects brought into commercial production. This includes additional gas resources in Aceh, as the company aims to contribute to the region’s transition from coal to cleaner-burning natural gas.
The Mako field, containing 2C contingent resources estimated at 376 billion cubic feet, is scheduled to begin production in 2026. The West Natuna Sea, which has been a crucial supplier of natural gas to Singapore for over two decades, is expected to continue this supply for at least another decade, with the Mako field playing a key role in extending this relationship through the existing transportation infrastructure.