Conrad Asia Energy signs significant gas sale agreement with PGN

Conrad Asia Energy Ltd (ASX: $CRD) has entered into a binding Gas Sales Agreement (GSA) with PT Perusahaan Gas Negara Tbk (PGN) for the sale and purchase of the domestic portion of Mako gas. The GSA marks a crucial step in the commercialisation of the Mako gas field, the largest undeveloped gas field in the West Natuna Sea. The GSA is part of Conrad's Domestic Market Obligation (DMO) as outlined in the Mako's revised Plan of Development (POD). The total contracted gas volume under the GSA is up to 122.77 trillion British Thermal Units (TBtu) with estimated plateau production rates of 35 billion British Thermal Units per day (BBtud). The completion of both GSAs is expected to be a significant milestone on the path to a Final Investment Decision (FID) for the Mako project targeted for Q4 2024.

Conrad Asia Energy's Managing Director and CEO, Miltos Xynogalas, on the gas sale agreement

As shared during our recent AGM, our focus has been finalising the underwriting gas sales agreements between the Mako Joint Venture, the Indonesian Government and Regulator and a Singapore based customer. These agreements are the essential documents that demonstrate financial viability of the project, which in turn underwrite value and financial sustainability. This announcement is therefore an important step for Conrad in commercialising the Mako Gas Field and building its gas business in Indonesia. Conrad has been working closely with PGN for the commercialisation of Mako gas and is delighted to have progressed this to a formal GSA. This GSA is a significant milestone on the road to FID which is targeted for Q4 of the current year. Conrad also signed an MOU with PGN in February this year for its other gas discoveries in offshore Aceh which further strengthens Conrad's alliance with PGN.

Summary of Conrad Asia Energy's gas sale agreement with PGN

Conrad Asia Energy Ltd (ASX: $CRD) has achieved a significant milestone by signing a Gas Sales Agreement (GSA) with PT Perusahaan Gas Negara Tbk (PGN) for the sale and purchase of the domestic portion of Mako gas. This agreement is a crucial step in the commercialisation of the Mako gas field, the largest undeveloped gas field in the West Natuna Sea. The GSA, with a total contracted gas volume of up to 122.77 trillion British Thermal Units (TBtu) and estimated plateau production rates of 35 billion British Thermal Units per day (BBtud), is expected to pave the way for a Final Investment Decision (FID) for the Mako project targeted for Q4 2024. Conrad's alliance with PGN and the progress made in commercialising Mako gas demonstrate the company's commitment to building its gas business in Indonesia. With further plans for gas discoveries in offshore Aceh, Conrad is poised to strengthen its position in the region's energy market.