Australia's Icon Energy signs A$32 billion LNG supply deal with China's SinoGas
08 Apr 2010
Icon Energy Ltd, a junior oil and gas explorer, said today that it has signed an A$32 billion ($29.7 billion) preliminary agreement with China's SinoGas Group to supply liquefied natural gas (LNG) over a 20-year period.
Queensland-based Icon Energy signed an agreement today with Shenzhen Sino Industrial Development Co, a subsidiary of SinoGas, to supply 40 million metric tons of LNG over two decades.
The export value of the agreement ranges from $A23 billion to $A32 billion, depending on oil prices. Detailed terms of the contrat will be negotiated and executed by 31 August 2010, Icon Energy said in a statement.
Founded in 1993, Icon Energy, formerly known as Icon Oil NL, is an acquirer, explorer and developer of oil and gas properties in Australia and the US.
Although a supply agreement was signed, Icon Energy is yet to produce LNG. The company says it plans to supply from its current tenements in South Australia and Queensland, through arrangements with existing joint-venture partners and by securing additional assets.
Icon Energy, which has a market capitalisation just below A$200 million, said it would commence its first LNG shipments to Shenzhen Sino in 2014.
Hong Kong-listed SinoGas is an investment holding company that deals in petroleum, compressed natural gas and liquid petroleum gas refuelling stations.
Shenzhen City, Guangdong Province-based Shenzhen Sino deals in natural gas, including production, engineering, construction, installation, operation and management.
Sino Gas plans to construct a A$727 million LNG receiving terminal capable of loading and off-loading up to 3 million metric tons of LNG per annum in Budaiao Bay, Nanao Island near Shantou City.
This LNG terminal project, designed to meet local gas demand, was approved by local government in January and then forwarded to the powerful National Development and Reform Commission (NDRC) for final approval.
Icon managing director Ray James said: "As a wholly-owned Australian company we're delighted to be negotiating a gas sale contract in China that ranks close to the recent announcements of our multi-national competitors."
.webp)
