InterOil signs up PNG gas buyer

InterOil Corp. signed a Heads of Agreement with Noble Clean Fuels of Singapore, a subsidiary of commodities trading Noble Group, to supply 1 million tonnes/year of LNG from a proposed Gulf LNG project in Papua New Guinea.

The project will be supplied with gas from Papua New Guinea onshore Elk and Antelope fields.

Gulf LNG is a joint venture between InterOil subsidiary Liquid Niugini Gas and Pacific LNG. The plan is to use modular 500,000 tonne/year trains for a 3 million tonne/year plant.

The plant will be financed by Perth-based Energy World Corp. in exchange for a 14.5% share of the LNG sale proceeds.

The project is to be developed in two phases beginning with a 2 million tonne/year year capacity, followed by another two modules totalling 1 million tonnes/year. The agreement specifies a 10-year supply contract starting in 2014.