LNG Ltd hopes to seal deals for C. Sulawesi mini-LNG project by year-end

Australian firm Liquefied Natural Gas Limited (LNG Ltd) said its was hoping to clinch heads of agreements to market the full capacity of its proposed 750,000 tonnes per annum Central Sulawesi mini-LNG plant project in September quarter.

The company said in a report released Wednesday that it was in talks with potential customers in four different Asian countries to acquire the plant?s full capacity for 20 years. The company did not give specific details but its presentation suggested that it was targeting India, South Korea, China, Thailand and The Philippines.

The company also said that during the September quarter it expected to pick engineering, procurement and management contractor for the development of the project, to appoint financial partners for the project equity and debts and to commence the approvals and regulatory process for the project to proceed.

The company, together with its 50-50 partner PT.Maleo Energi Utama had signed Exclusivity Agreement with Senoro-Toili JOB owners; JSX-listed Medco Energi International Tbk and state oil and gas company PT. Pertamina to gain access to 800 BCF of Senoro-Toili?s gas at a rate of 120 MMCFD for 20 years, to be used as feeding for the proposed mini?LNG plant which is proposed to be built near the town of Luwuk and onshore Senoro-Toili.

LNG Ltd said that it and Maleo Energi Utama, also a subsidiary of Medco Energi is in the process of establishing Indonesian based foreign investment company called PT. LNG Energi Utama, which will develop and own the proposed LNG plant and related facility.

The US$240 million project is expected to commence in 2007. (alex)