Sembcorp Industries' plan to import natural gas from Indonesia failed, and its share price fell 4.9% intraday on Friday (March 14).

At 10:11 a.m., Semco Industrial's stock price fell 4.9% or 0.30 yuan to 5.79 yuan, with 3.1 million shares reselling. The last time the stock price fell to around 5.79 yuan was in February last year.

The stock price returned to stable in the afternoon, and as of 3:30 pm, the stock price rebounded to 5.93 yuan.

Sembcorp Gas announced in 2023 that its subsidiary Sembcorp Gas will sign a contract with West Natuna Exploration, Empyrean Energy and Coro Energy Duyung to import up to 111 billion units of natural gas from Indonesia's Mako gas fields every day, but the contract was terminated without approval from Indonesia's regulatory authorities.

If the contract is approved, Sembilan will import Indonesian natural gas from 2026 for 11 years.

Further reading

International Special Report: Focusing on both energy self-sufficiency and transformation, Indonesia plans to develop sustainable development

International Special Report: Focusing on both energy self-sufficiency and transformation, Indonesia plans to develop sustainable development

BMI report: LPG demand continues to increase in Southeast Asian countries except Singapore

BMI report: LPG demand continues to increase in Southeast Asian countries except Singapore

Semco pointed out that although the contract was terminated, this would not affect the company's energy costs or the supply of natural gas to Singapore users, as the company would continue to cope with demand through other natural gas sources such as liquid natural gas.