The ASX-listed company announced today that the exclusivity agreement (EA) had been signed with the gasfield owners, PT Pertamina (Persero) and PT Medco E&P Tomori Sulawesi. It is conditional on the satisfaction of prescribed milestones by Liquefied Natural Gas Limited and the two Indonesian companies. Once these milestones have been met, the parties intend to negotiate a 20-year gas supply agreement for the supply of 120 million cubic feet of gas per day to the LNG Ltd.

“The EA establishes a program for the company to pursue firm LNG sales contracts, being a condition precedent of the EA, and progress to a bankable feasibility study and definitive gas supply agreement with the Senoro gasfield owners,” LNG Ltd said.

“The company is in advanced negotiations with several interested LNG customers and expects the full production capacity of the proposed LNG plant to be sold to four customers in four different countries in the Asian and Indian subcontinent regions.”

LNG Ltd and Indonesian group PT Maleo Energi Utama are in the process of establishing the joint venture Indonesian company, PT LNG Energi Utama, which will undertake the LNG plant development and fund the US$160 million capital cost of the project.

The definitive gas supply agreement will be subject to the approval of BP MIGAS, the Indonesian Government Agency for upstream oil and gas activities.

The Senoro gasfield’s reserves were certified by international independent consultants Gaffney, Cline and Associates in January 2003.