China’s ENN Energy has become the third player to sign up for volumes at Liquid Niugini Gas’ Gulf LNG export project in Papua New Guinea.
The outfit’s ENN Energy Trading Company signed a heads of agreement for between 1 million and 1.5 million tonnes per annum over 15 years.
The deal begins in 2015.
Liquid Niugini Gas, a joint venture of US-based InterOil and Singapore’s Pacific LNG, is planning Papua New Guinea’s second LNG plant in a dual track scheme involving both modular land-based liquefaction and floating LNG.
The project will export LNG produced from the Elk and Antelope fields.
The companies are aiming to execute a binding sales and purchase agreement with ENN by the second quarter of next year.
ENN, an independent gas distrutor formerly known ans XinAo Gas, is planning two LNG import terminals in China.
“We are excited to begin a long-term relationship with this rapidly growing, end user customer,” said Liquid Niugini Gas vice president Conrad Kerr.
Liquid Niugini Gas is aiming to take a final investment decision on Gulf LNG by year-end. However, that timeline is in doubt after PNG officials demanded that it bring in an established LNG player.
Traders Gunvor and Noble Group have also signed preliminary deals to buy volumes.
