Pacific LNG And ENN Sign Heads of Agreement on LNG Sale

abarrelfullabarrelfull wrote on 05 Dec 2011 12:12
Tags: asia interoil lng papua-new-guinea png

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Pacific LNG Operations Ltd. (“Pacific LNG”) and InterOil Corporation (NYSE:IOC) (“InterOil”) announced the signing of a Heads of Agreement (HOA) with ENN Energy Trading Company Ltd. (“ENN”), for the supply of one to one and one half, million tonnes per annum (mtpa) of liquefied natural gas (LNG) from the Gulf LNG Project in Papua New Guinea.

The Gulf LNG Project in Papua New Guinea (PNG) comprises the Elk and Antelope gas fields and the planned liquefaction and associated facilities in the Gulf Province of PNG to be developed by Liquid Niugini Gas Ltd., InterOil and Pacific LNG's joint-venture project company.

The HOA, while non-binding, reserves the volumes for ENN through the negotiation period, and sets out the basis upon which the parties intend to negotiate and document terms for sale and purchase of 1 – 1.5 mtpa of LNG, for a period of 15 years commencing in 2015, to be supplied by the proposed Gulf LNG Project in PNG. InterOil and Pacific LNG intend to complete negotiations and execute a binding Sales and Purchase Agreement (SPA) with ENN by the second quarter of 2012.

Pacific LNG President Henry Aldorf commented, “This confirms continued strong market support for our Gulf Project and PNG. ENN is a major player in what soon is to be the worlds largest gas market, serving a broad range of natural gas consumers. With total assets near 40 billion RMB, ENN is well suited to import LNG and continue to grow its presence in the thriving clean energy industry in China. We are pleased to have executed an additional HOA for long-term LNG off-take from our Gulf LNG Project in Papua New Guinea. We have 3.3 - 3.8 mtpa now committed under HOA’s, and SPA discussions are underway.”

Liquid Niugini Gas V.P. LNG, Conrad Kerr, commented, “ENN serves approx. 22,000 Industrial, and Commercial customers, with 22 million cubic meters per day installed capacity, and 6 million households, via its 18,000 km gas pipeline network. This is a tremendous end user customer to begin a long-term relationship with.”

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