Australia: Icon Energy, Shantou SinoEnergy Extend LNG Deal
Icon Energy announced that Icon and Shantou SinoEnergy of China, have agreed to extend the completion date for conditions precedent in the Gas Sales Agreement signed by both parties in March 2011.
The new date for completion of “Conditions Precedent” as detailed below is, on or before 30 June 2014.
The LNG Sales Agreement includes the following conditions precedent with amended dates:
(a) In favour of Shantou SinoEnergy (as the Buyer of LNG):
- Buyer obtaining any necessary import approvals on or before 30 June 2014 from Chinese Government Authorities to allow the construction and operation of the Receiving Facilities and the purchase and import by it of LNG under the LNG Sales Agreement;
- Buyer delivering to Seller on or before 30 June 2014 the written certification of a Rating Agency specifying for Buyer a credit rating of AAA (where the Rating Agency is S&P) or Aaa (where the Rating Agency is Moody’s).
(b) In favour of Icon Energy (as the Seller):
- Seller delivering to Buyer by on or before 30 June 2014 a Reserves Certificate of at least 2.0 TCF of Proven and Probable Reserves (2P) of Natural Gas (which the Parties agree is a sufficient quantity of Natural Gas to enable Seller to comply with its LNG supply obligations to Buyer under the LNG Sales Agreement);
- Seller obtaining by on or before 30 June 2014 all required authorisations (including for the development and operation of any feedstock fields and LNG facilities) on terms satisfactory to Seller in its sole discretion.
The successful extension of the Shantou SinoEnergy Gas Sales Agreement allows Icon Energy to fully investigate a number of gas supply options in Australia.
The recent news that Halifax-1, the shale gas well in ATP 855P, has intersected over 1,300 metres of overpressured gas saturated sands and shales is a very exciting prospect for Icon Energy. The Hydraulic Stimulation of Halifax-1 will begin within days followed by flow testing in early 2013.
Mr Ray James Managing Director Icon Energy said, “Shale Gas has the potential to transform the Australian gas market especially as a supply source for LNG and we are now rapidly building an understanding across the Nappamerri Trough of the size of this potentially game changing gas resource”.
LNG World News Staff, December 19, 2012