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The sales and purchase agreement was signed between Sembcorp Fuels and Chevron U.S.A. Inc. (Singapore Branch).
Under the SPA, Sembcorp will import up to 0.6 million tonnes of LNG per annum.
Sempcord said the LNG deliveries are expected to start from 2028.
The SPA will further strengthen Sembcorp’s existing natural gas supply portfolio from
diversified piped and liquefied sources globally.
“As a key natural gas importer for Singapore, Sembcorp is committed to supporting the country with a stable and resilient supply of energy,” the company said.
Second LNG SPA for Sembcorp this year
This is the second long-term LNG SPA Sembcorp signed this year.
Earlier this year, Sembcorp French energy giant TotalEnergies signed a 16-year LNG supply deal with Sembcorp.
According to TotalEnergies, the deal entails the delivery of up to 0.8 mtpa of LNG, starting in 2027.
In 2021, Singapore’s Energy Market Authority appointed Sembcorp Fuels as a new term LNG importer for Singapore, allowing it to import and sell regasified LNG to customers in the market.
Singapore currently imports LNG via the Singapore LNG-operated LNG terminal on Jurong Island, which began commercial operations in May 2013.
It currently operates with two jetties, three storage tanks of 180,000 cbm each, a fourth storage tank of 260,000 cbm, and a peak sendout capacity of around 11 mtpa.
Singapore LNG recently also signed a deal with Japan’s MOL to charter one FSRU for Singapore’s second LNG terminal.
The FSRU will be berthed at Jurong Port and will have a regasification capacity of 5 million tons per annum (mtpa).
It will boost Singapore’s regasification capacity by about 50 percent.
On the other hand, Chevron produces LNG at its two giant Australian LNG export terminals, Wheatstone and Gorgon, as well as the Angola LNG terminal.
Chevron also previously signed long-term contracts to buy LNG from other firms such as US producers Cheniere and Venture Global LNG.