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Icon Energy extends LNG sales agreement with Shantou SinoEnergy

LNG Industry,

Icon Energy and Shantou SinoEnergy have agreed to extend the completion date for conditions precedent in a Gas Sales Agreement (GSA) signed by both parties in March 2011.

The new date for completion of the conditions precedent is 30 June 2015. The GSA is for 40 million tpa of LNG (2 million tpa over a period of 20 years).

Conditions precedent

The LNG sales agreement includes the following conditions precedent with amended dates:

  • Shantou SinoEnergy is to obtain necessary import approvals on or before 30 June 2015 from Chinese government authorities to allow the construction and operation of the receiving facilities and the purchase and import by it of LNG under the LNG sales agreement.
  • Icon Energy will deliver to Shantou on or before 30 June 2015 a reserves certificate of at least 2 trillion ft3 of proven and probable reserves of natural gas.
  • Icon will also have to obtain by the same date all required authorizations (including for the development and operation of any feedstock fields and LNG facilities) on terms satisfactory to the seller.

LNG demand

Commenting on the extension, Icon Energy Managing Directory, Ray James, said: “We are delighted with the ongoing relationship with Cyrus Lin, Managing Director of Shantou SinoEnergy and we look forward to being in a position where both Shantou SinoEnergy and Icon Energy are in a position to meet their respective conditions precedent.

“With demand for LNG in Asia Pacific region set to almost double, from 175 million tpa in 2013 to 325 million tpa in 2025, Icon Energy is well positioned to meet some of this demand over the coming years.

“The successful extension of the Shantou SinoEnergy Gas Sales Agreement allows Icon Energy to fully investigate a number of gas supply and delivery options in Australia.”

Adapted from press release by Katie Woodward

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