MELBOURNE, Sept. 28 -- LNG Ltd., Perth, has signed a heads of agreement to supply 1.8 million tonnes/year of LNG to Kitimat LNG Inc., a unit of Galveston LNG Inc., Calgary, for delivery to Kitimat's recently approved, proposed receiving terminal in British Columbia, Canada (OGJ Online, Aug. 28, 2006).
LNG Ltd. Chief Executive Maurice Brand said the agreement gave his company a level of security to access gas supplies for consummating the deal.
He said he is pursuing a number of gas supply prospects in the Australasian region to use as feedstock for the LNG plant.
"LNG Ltd. has nearly completed design, engineering, procurement strategy, construction costing, and project scheduling for annual plant capacities ranging from 850,000 tonnes up to 2.3 million tonnes," he said.
LNG Ltd., which listed on the Australian Stock Exchange in September 2004, specializes in developing LNG plants to use feedstock from stranded gas fields or gas that is otherwise flared or vented.
The company already has projects under way in India and proposals for East Africa and Indonesia.
Construction of the $500 million terminal is expected to begin late this year and is scheduled to come on stream towards yearend 2009.
The project is being touted as providing Pacific Basin LNG suppliers with shorter shipping distances to North America and access to the world's largest gas market.