A supply chain agreement is being negotiated between Liquefied Natural Gas Limited (LNG Ltd) and PetroChina Australia
August 1, 2012
A supply chain agreement is being negotiated between Liquefied Natural Gas Limited (LNG Ltd) and PetroChina Australia for the
delivery of gas to the Port of Gladstone.
Under the tolling agreement, PetroChina will deliver Molopo Energy Limited gas to LNG’s proposed 3 million tonne per annum project at Fisherman’s Landing at the Port of Gladstone, Queensland.
According to LNG, PetroChina Australia will arrange the storage and loading of gas onto LNG ships.
The proposed agreement is the result of a share sale arrangement between Molopo and PetroChina Australia, announced today.
Under the share sale arrangement, Petro China will acquire 100 percent of Molopo’s coal seam gas assets in Queensland.
LNG managing director Maurice Brand says the proposed tolling agreement is a foundation step in the supply plan for the LNG project at the port of Gladstone.
“The proposed arrangement between PetroChina Australia and LNG Ltd will represent a significant milestone in the progression and implementation of LNG Ltd’s gas supply plan to secure sufficient gas to enable its LNG project to proceed to final investment decision and construction,” Brand says.
Under the proposed tolling agreement LNG will receive a fixed capacity reservation fee and also a tolling fee on the quantity of LNG loaded onto LNG ships.
PetroChina Australia is wholly owned by PetroChina International Investment Compay Limited, which is a related company to LNG Ltd’s largest shareholder, China Haunqui Contracting and Engineering Corporation.