Pacific LNG Operations, an affiliate of Clarion Finanz and InterOil jointly sign a heads of agreement (HOA) with ENN, an energy trading company, for supplying Mt per annum (mtpa) of the liquefied natural gas (LNG) from the Gulf LNG plant in Papua New Guinea (PNG).
The Gulf LNG facility includes Antelope and Elk gas plants and liquefaction and associated plants in the Gulf Province of PNG, which are to be established by InterOil, Liquid Niugini Gas and a joint venture of the pacific LNG.
The signed HOA provides sole ownership on the LNG volumes for ENN and sets out the rules, based on which the parties plan to negotiate and document terms for the sale and purchase of the LNG ranging from 1 mtpa to 1.5 mtpa, for about 15 years starting from 2015. The three parties together have a target of completing negotiations and binding of the sale and purchase agreement (SPA) with ENN by the second quarter of the year 2012.
Phil Mulacek, Chief Executive Officer of InterOil, stated that the company is delighted to execute an additional HOA for the long-term LNG supply from the Gulf LNG facility in Papua New Guinea. Mulacek said that InterOil is proud enough to join with ENN, which supplies piped gas to plants across 100 cities in China with 49 million connectable urban populations. Mulacek added that with this SPA and HOA agreements, InterOil trusts that its Gulf LNG facility has operational support from various industries.
Source: http://www.interoil.com