nterOil Corporation and Pacific LNG Operations Ltd. announced the signing of a Heads of Agreement (HOA) with ENN Energy Trading Company Ltd., for the supply of 1 -1.5 million tpa of 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 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, provides exclusivity on the LNG volumes for ENN, during negotiation of the definitive agreement, and sets out the basis upon which the parties intend to negotiate and document terms for the purchase and sale of between 1.0 and 1.5 million tpa of LNG, for a period of 15 years commencing in 2015. InterOil, Pacific LNG, and ENN plan to execute a binding Sales and Purchase Agreement with ENN by the second quarter of 2012.
InterOil Chief Executive Officer Phil Mulacek commented, “We are pleased to have executed an additional HOA for long-term LNG off-take from our Gulf LNG Project in Papua New Guinea. InterOil is proud to work with ENN, the largest independent natural gas distribution company in the Peoples Republic of China.With 3.3 to 3.8mtpa now under HOA’s, and SPA discussions underway, InterOil believes it has industry support for its Gulf LNG project.”
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