December 2, 2011
Port Moresby and Houston, TX — InterOil Corporation (NYSE: IOC) (POMSoX: IOC) (“InterOil” or the “Company&rdquo
and Pacific LNG Operations Ltd. (“Pacific LNG&rdquo announced the signing of a Heads of Agreement (HOA) with ENN Energy Trading Company Ltd. (“ENN&rdquo, 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 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 not binding, 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 1.5mtpa of LNG, for a period of 15 years commencing in 2015. InterOil, Pacific LNG, and ENN have a target to complete negotiations and execute a binding Sales and Purchase Agreement (SPA) with ENN by the second quarter of 2012.
Phil E. Mulacek, InterOil Corporation Chief Executive Officer, 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. ENN operates piped gas projects in over 100 cities in China with a total connectable urban population of 49 million. 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.”
Conrad Kerr, Liquid Niugini Gas Vice President, commented,
“ENN serves approximately 22 thousand industrial, and commercial customers with 780 million cubic feet per day of installed capacity, and 6 million households, by its 11 thousand mile gas pipeline network. We are excited to begin a long-term relationship with this rapidly growing, end user customer.”
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Paris - Total has signed a binding Heads of Agreement with ENN LNG Trading for the delivery of 0.5 million tonnes per year of liquefied natural gas (LNG) for a period of 10 years. The deliveries will be sourced from Total’s global LNG portfolio and are expected to begin in 2018 upon completion of ENN’s Zhoushan LNG receiving terminal.
“Total is the first major to sign a binding LNG supply agreement with ENN, one of the largest natural gas distributors in China,” commented Laurent Vivier, President Gas at Total. “Building partnerships with new LNG buyers such as ENN in China allows us to grow our presence in this key LNG market.”
Total, a world leader in LNG
Total is a world leader in LNG, with solid and diversified positions along the entire value chain and LNG production of 10.2 million tonnes in 2015.
Total is active in most of the major LNG producing regions as well as in the main LNG markets and continues to develop its LNG business as a key component of its growth strategy. The Group holds interests in LNG plants in Indonesia, Nigeria, Norway, Oman, Qatar, the United Arab Emirates, Yemen, Angola, Australia and Russia. Total has also secured the purchase of LNG from projects in the United States, and has long-term access to regasification capacity in key global LNG markets.
Through the expansion of its trading, marketing and logistics businesses and through the development of its LNG portfolio, Total is able to supply natural gas and LNG directly to its key customers worldwide while retaining flexibility to adapt to demand variations and to seize market opportunities.
About ENN LNG Trading
ENN LNG Trading Company Limited is a subsidiary of ENN Energy Holdings Ltd., one of the largest natural gas distributors in China. ENN Energy Holdings operates in 146 cities across 17 provinces and autonomous regions, with over 11 million residential and 52,000 industrial/commercial customers. ENN’s Zhoushan LNG receiving terminal is under construction and expected to be in operation by 2018.
- See more at: http://www.total.com/en/media/news/press...AOLx9.dpuf
