SCT&E LNG Inc. has announced that a state-owned utility company in the Asia Pacific region has signed a non-binding Memorandum of Understanding (MoU) to purchase 1 million tpy of LNG from its future facilities to be constructed on Monkey Island in Cameron Parish, Louisiana, US.
In a statement, SCT&E LNG said that the state-owned utility company is one of the largest in the region and has significant plans to expand and develop natural gas power generation facilities to support its increasing energy demand.
Richard Ieyoub, former Attorney General for the State of Louisiana and member of the SCT&E LNG Board of Directors, said: “The signed MOU provides the state-owned utility company 20-year access to Henry Hub-indexed LNG. This agreement is expected to bring SCT&E LNG revenues in excess of US$4 billion over the life of the agreement.”
Chairman and CEO, Greg Michaels, added: “The SCT&E LNG project is targeting traditional and non-traditional LNG buyers who need LNG in 2021 and beyond. Signing this MoU validates our business strategy and the market's desire for LNG in 2021 and the years that follow. This is a key milestone for our LNG project. The future of SCT&E LNG is bright."
The US$9.4 billion LNG facility on Monkey Island will be capable of liquefying approximately 12 million tpy of natural gas. SCT&E LNG is currently negotiating with additional offtakers/buyers and expects to sign subsequent LNG offtake MOUs in the second half of 2015.
The June 2015 issue of LNG Industry contains an exclusive article from SCT&E LNG, introducing the LNG facility. To read the article, register for free today.
Edited from press release by Callum O'Reilly