InterOil and Pacific LNG Operations Ltd. have signed a Heads of Agreement (HOA) with Noble Clean Fuels Limited.
The agreement secures the supply of 1m tonnes per annum (mtpa) of Liquefied Natural Gas (LNG) from the Gulf LNG Project in Papua New Guinea.
Phil Mulacek InterOil Chief Executive Office, commented, “We are pleased to have executed our first HOA for LNG off-take from our Gulf LNG Project in Papua New Guinea. InterOil is proud to work with the Noble Group, which has a proven track record of providing long-term fuel supply to major utilities across Japan, Korea, China, and Asia as a whole.$quot;
Conrad Kerr, Liquid Niugini Gas Vice President, described Noble as a ‘good fit’. He said, “LNG supply is a natural expansion of the Noble Group's historical relationships in long-term coal supply for power generation.$quot;
The HOA sets out the basis upon which the parties intend to conclude terms for the purchase and sale of one mtpa of LNG, (FOB) for a period of 10 years commencing in 2014, to be supplied by the proposed Gulf LNG Project in PNG. InterOil and Pacific LNG intend to complete negotiations and execute binding agreements with Noble later this year.