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

Australian independent energy company Liquefied Natural Gas Limited announced Wednesday it had signed a Memorandum of Intent (MOI) with an Indian major industrial group for a 15 year supply of up to 365,000 tons per annum (1,000 tons per day) of liquefied natural gas (LNG) to the customer's operations in Southern India.

?This new customer takes the company's total LNG supply under MOI's to up to 1,350,500 tons per annum (3,700 tons per day). The LNG will be used by the customer to replace its current use of higher priced oil based products,? LNG Ltd?s said in a statement to the Australian Stock Exchange.

LNG Ltd is to develop LNG plants, with production capacity ranging from 100 to 1,000 tons per day, at Mtwara Port in Tanzania. The company has signed a Memorandum of Understanding with Artumas Group Inc, a Canadian company and the operator of Mnazi Bay gas field in Tanzania, for 220 billion cubic feet of gas supply required for the company?s proposed LNG plant over the 15 year.

LNG Ltd has targeted to sale about 1,825,000 tons per annum (5,000 tons per day) by the June 30, 2005 in order to enable the company to commence construction of the LNG plants.

Previously, LNG Ltd has signed MOIs to supply up to 2,700 tons per day of LNG to two existing power plants in India. (Robert)