Under the heads of agreement with Kitimat LNG, any sales from LNG Ltd would be purchased on delivery at the terminal.
Construction of Kitimat’s terminal is to begin later this year and is expected to be operational by the 2009 fourth quarter.
To be located on Canada’s west coast, the facility will give Pacific Basin LNG suppliers access to the North American gas market.
LNG Ltd managing director Maurice Brand said this morning that the HoA provides security for the company to access gas supply and achieve financial close of LNG plant opportunities by the end of 2007 to allow first delivery in the fourth quarter 2009.
“A number of gas supply prospects are being pursued by LNG Ltd in the Australasian region as feedstock for an LNG plant,” he said.
“Importantly, LNG Ltd has now substantially completed the design, engineering, procurement strategy, construction costing and project scheduling for a range of LNG plant sizes, from 850,000 tonnes per annum to 2.3 million tones per annum, and is well positioned to fast-track the LNG plant development immediately a gas supply source is secured.”
LNG Ltd, which is listed on the Australian Stock Exchange, is focused on developing stranded gas and using its new processing technology to improve efficiency.
