ExxonMobil signs Gorgon LNG deal

ExxonMobil, one of three joint venture partners in the proposed development of the Gorgon-Jansz gas fields, agreed to sell some of its LNG production to Petronet LNG of India.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, May 12 -- ExxonMobil Corp., one of three joint venture partners in the proposed development of the Gorgon-Jansz gas fields, agreed to sell some of its LNG production to Petronet LNG of India.

ExxonMobil will supply 1.5 million tonnes/year of LNG to the Indian company for 20 years. This represents 10% of the three-train project's total planned capacity of 15 million tonnes/year of LNG.

ExxonMobil has a 25% share in the project and its production. ExxonMobil and Petronet will work to conclude a sale and purchase deal in June.

Petronet intends to ship its LNG from the proposed Barrrow Island plant to a new receiving terminal in the port city of Kochi, which will have a total capacity of 2.5 million tonnes/year of LNG. The terminal is scheduled to begin operations in 2011.

This is the latest move to develop the Gorgon-Jansz project, the most recent being the conditional environmental approval by the Western Australian EPA last week for a third LNG train to be added to the development plans on Barrow Island.

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