Petrox Inks Alberta LNG Deal

Petrox Resources entered into a co-operation framework agreement with Qingdao Sinoenergy of China and Asiafic Clean Energy of Hong Kong to establish an Alberta joint venture company, Gascana AB Energy.

The objective of the announced JV is the construction of an LNG liquefaction plant in Alberta with a daily production capacity of 2,950 tonnes (150 MMCF). Asiafic is a wholly owned subsidiary of Qingdao Sinoenergy.

Initially, the Corporation will have a 10% equity interest in the joint venture and will be responsible for the implementation of the project, including obtaining the necessary regulatory approvals for the construction of the LNG plant, obtaining utility supplies, and other project planning and development activities. Asiafic will have 90% equity interest in the joint venture and will be responsible for obtaining the upstream natural gas supply and purchasing the land for the plant. Gascana AB will be responsible for the construction of the plant, applications to related authorities and engineering design of the plant.

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Press Release, June 19, 2014