SINGAPORE: Conrad Asia Energy (ASX:CRD) has signed a binding Gas Sales Agreement (GSA) with PT PLN Energi Primer Indonesia (PLN EPI) for the full output from its Mako Gas Field in Indonesia, marking a key milestone in the company’s regional expansion strategy.
The agreement, signed on July 16, 2025, covers 392 trillion British thermal units (TBtu) of natural gas to be delivered through January 2037. The Mako gas price will be indexed to the Indonesian Crude Price (ICP), rather than a fixed domestic offtake price — a rare move in Indonesia’s domestic gas market.
PLN EPI, a sub-holding of the state-owned electric utility PT PLN Persero, will build and finance the pipeline connecting West Natuna to Batam, with no financial burden on Conrad.
Conrad Managing Director and CEO Miltos Xynogalas said the deal “crystallises the value” of the Mako field, describing it as a pivotal step toward production and a boost to domestic energy supply, particularly in Batam, a region witnessing fast-growing power demand from data centers.
The GSA replaces previously terminated agreements with PT Perusahaan Gas Negara Tbk and Sembcorp Gas Pte Ltd, following regulatory directives from Indonesia’s Ministry of Energy and Mineral Resources.
The gas sales deal is expected to support farm-out negotiations for the Duyung Production Sharing Contract and pave the way for a final investment decision (FID) on Mako. Conrad holds a 76.5% interest in the Duyung PSC, rising to 91.5% upon transfer from Coro Energy.