Rick Wilkinson
OGJ Correspondent
MELBOURNE, May 16 -- Natural Gas Development Co. (NGDC), a new entity owned by Canadian firm InterOil, Merrill Lynch Commodities, and Clarion Finanz AG, has signed a memorandum of understanding with the government of Papua New Guinea to pursue development of a gas processing plant and gas liquefaction facility.
The MOU will enable the company to assist in gas processing.
InterOil, which owns the 32,500-b/d Papua New Guinea refinery in Port Moresby and conducts onshore exploration in the country, has secured a $130 million nonconvertible credit facility, $30 million of which is for the gas projects.
The LNG proposal is for a plant capable of producing as much as 5 million tonnes/year. Project sponsors didn't specify capacity of the proposed gas processing plant.
