LNGLTD makes African inroads

Recently-listed Liquid Natural Gas Limited has announced that it has signed the latest in a string of LNG deals, this time for the supply of LNG from Tanzania to an unnamed South African company.

The memorandum of understanding (MOU) is for the 15-year supply of 120,000 to 360,000 tonnes per annum of liquefied natural gas to the operations of a major customer in South Africa.

LNGLTD managing director Maurice Brand said the new MOU was a major step for the company as it diversified its country risk profile.

“There is no importation of LNG into South Africa so it’s ground-breaking,” Mr Brand said.

“The plan is to use the existing ports of Richard’s Bay, Durban, East London and Cape Town for the delivery of LNG and we expect the first delivery to be in the calendar year 2007.

“The agreement also lifts the company’s total LNG supply profile to 1.7 million tonnes per annum, enabling the company to remain confident of achieving its contracted LNG sales target of 1.8 million tonnes per annum by 30 June, 2005,” he said.

The South African deal is the first of the company’s proposed LNG supply project to a country other than India.

LNGLTD will now proceed to complete a pre-feasibility study into the supply of LNG into several regions in South Africa.

The company then anticipates a definitive LNG sales agreement and development agreement to be concluded in the first quarter of 2005.

In India, LNGLTD has also memorandums of intent to supply to existing Indian power plants with 2700 tonnes of LNG per day and 200tpd of gas to India’s major gas transmission and marketing company.

The company also signed an MOI for the 15-year supply of up to 365,000 tonnes per annum of LNG to a major Indian industrial company.

LNGLTD has also signed an MOU with Canadian upstream energy company Artumus for the supply of 220 billion cubic feet of gas from a stranded gas field on the coast of Tanzania.

WA Business News also understands that the company is advancing discussions for deals in at least two other countries.

LNGLTD is a Perth-based company that accesses smaller, low-cost gas reserves that would otherwise not be developed by larger companies.