SCT&E LNG said it has signed a memorandum of understanding with a U.S. upstream natural gas supplier for its export project on Monkey Island, Cameron Parish, Louisiana.
The agreement provides enough natural gas to enable the company to produce 4 million tons per annum of LNG. The agreement represents one-third of the gas needed for the entire project (12 mtpa) with terms that allow for additional supply, the company said in a statement.
SCT&E LNG currently has approval from the Department of Energy to export 12 mtpa to countries with whom the U.S. has a Free Trade Agreement.
Greg Michaels, Chairman and CEO of SCT&E LNG , said that, during the company’s recent 45-day trip to Asia and South America and meeting with potential investors and offtakers, SCT&E LNG received positive feedback on the potential for a long-term fixed-price natural gas supply. A number of prospective customers consider the company’s offering as a hedge against future unknown gas prices.
According to Michaels, the MOU provides the customers with a fixed-price commercial structure they can bank on to build their economies and deploy 20-plus year assets with measureable and predictable results.
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Image: SCT&E LNG