Regional LNG: Australia?s LNG Limited signs HoA on LNG supply to India

Australian firm Liquefied Natural Gas Limited said Thursday it had signed a Heads of Agreement (HOA) with Southern Petrochemical Industries Corporation Ltd (SPIC) for the supply of 360,000 tons per year (approximately 1,000 tons per day) of liquefied natural gas (LNG), over a 20 year term, to the latter?s fertilizing plant in India.

LNG Limited said first LNG supply to SPIC?s plant located in Tuticorin, on the Southern tip of India, is expected to take place in the last quarter of 2007.

LNG Limited is to develop LNG plants at Mtwara Port in Tanzania. The company has targeted to sale about 1,825,000 tons per annum (5,000 tons per day) by June 30, 2005 in order to enable the company to commence construction of the LNG plants.

LNG Limited has previously secured HoA for LNG supply of 600,000 tons per year (approximately 1,700 tons per day) and Memoranda of Intent/Understanding for 1,000,000 tons per year (3,000 tons per day), and is in advanced discussions with other parties for aggregate additional LNG supply of over 1,000,000 tons per year (3,000 tons per day).

The company is also evaluating several potential gas feedstock alternatives and at this stage favours gas from existing gas discoveries in the Middle East, Indonesia or Malaysia, due to the immediate adequacy of the available gas reserves. (Robert)