Sep. 17, 2009 (Hugin AS) --
Golar LNG Energy (OOTC:LNGYF) (TSXV:LNG) Limited (Golar Energy) Announces Heads of Agreement
to sell LNG from the Gladstone LNG Fisherman's Landing project to
Toyota Tsusho Corporation (a Toyota Group trading company).
Golar Energy is pleased to announce that it has signed a Heads of
Agreement with Toyota Tsusho Corporation (OOTC:TYHOY) of Japan (Toyota Tsusho) for
the sale of all of the production from the first train of Gladstone
LNG. The agreement covers the delivery of approximately 1.5 million
tonnes per annum of LNG to Toyota Tsusho over a 12 year period from
2014 to 2026, with a separate build up period commencing at the end
of 2012, as well as the parties' intention to discuss Toyota Tsusho's
potential acquisition of a minority equity interest in the Gladstone
LNG Fisherman's Landing project.
Golar Energy will provide the shipping necessary to transport the LNG
from Australia to Toyota Tsusho's nominated receiving facilities.
Delivery of the LNG will utilise up to two of Golar's existing LNG
Carriers.
Oscar Spieler, Golar Energy's CEO commented that "We are delighted to
have reached this important milestone in the development of the
Gladstone LNG project. This agreement is a significant milestone for
the project and we are very proud to have reached agreement with a
corporation of the standing of Toyota Tsusho. We look forward to
building a strong and mutually beneficial relationship with Toyota
Tsusho over the life of the project.
This announcement is further evidence of the leading position of the
Gladstone LNG Fisherman's Landing project in the rapidly developing
LNG from Coal Seam Gas sector. The signing of the HOA significantly
advances Golar Energy's strategy of building a "midstream" LNG
position for the company which covers liquefaction, shipping and
regasification. The Gladstone LNG project has the potential to
materially enhance the earning capacity and profile of Golar Energy."
In February 2009 an HOA with the Australian listed company Liquefied
Natural Gas Ltd (LNG Ltd) was signed covering the joint development
of the Gladstone LNG project to produce LNG from Coal Seam Gas (CSG)
in Gladstone, Australia.
The project company Gladstone LNG Pty Ltd (Gladstone LNG) is
intending to develop a mid-scale (1.5 million tonne per annum per
train) liquefied natural gas plant in the Port of Gladstone,
Australia. The plant will purify and liquefy CSG sourced from the
Arrow Energy Ltd gas fields, located in Central Queensland, north
east Australia. Golar Energy and LNG Ltd have agreed to each take an
equity position of 40% in the GLNG joint venture. Arrow Energy has an
option to take the final 20% equity in the project. The current
estimated development cost for the LNG facility is approximately USD
500 million. The CSG will be delivered by Arrow Energy to the LNG
plant boundary at Gladstone. Once the CSG has been processed at the
LNG plant, it will be loaded onto Golar Energy owned LNG Carriers for
export markets. First production is currently scheduled for 2012. The
project also offers attractive expansion opportunities.
Under the terms of the HOA signed with LNG Ltd, Golar Energy has
agreed to purchase the full LNG output from the first LNG train on an
FOB basis.
Golar LNG Energy Limited
September 17, 2009
Hamilton, Bermuda.
Questions should be directed to:
Oscar Spieler: CEO - +65 6296 5518
Golar Management Ltd - +44 207 063 7900:
Graham Robjohns: Chief Financial Officer
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
