PetroChina Australia Completes Queensland Asset Acquisition

LNG Limited said that PetroChina Australia has completed the acquisition of Molopo’s Queensland coal seam gas assets.

As previously announced, PetroChina Australia and the Company have executed a non-binding Letter of Intent in relation to securing gas supply for the Company’s 100% owned 3 million tonne per annum (mtpa) LNG project, at Fisherman’s Landing, Port of Gladstone, Queensland (LNG Project).

The Letter of Intent, amongst other things, states the intent of PetroChina Australia and the Company to work together to secure sufficient gas for the Company’s first LNG train, of a guaranteed LNG production capacity of 1.5 mtpa. This includes the Molopo Queensland CSG assets acquired by PetroChina Australia, in relation to which PetroChina Australia is now the operator of the associated Joint Venture with Mitsui E&P Australia.

PetroChina Australia and the Company will now use their reasonable endeavours to negotiate and execute a Tolling Agreement, for gas to be delivered to the LNG Project, for liquefaction, storage and loading onto LNG ships arranged by PetroChina Australia or its designated LNG buyer.

PetroChina Australia, wholly owned by PetroChina International Investment Company Limited, is related to the Company’s largest shareholder (19.9%), China Huanqiu Contracting & Engineering Corporation (HQC), who has been selected as the engineering, procurement and construction contractor for the LNG Project.

Mr Brand, the Company’s Managing Director, said that “This is an important step for the Company to secure gas supply for the LNG Project. The parties are continuing to work together to secure the balance of gas required and finalise all the necessary commercial arrangements for the LNG Project to proceed to final investment decision as soon as possible ”.

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LNG World News Staff, November 02, 2012; Image: LNG Ltd