InterOil Corporation and Pacific LNG Operations Ltd. have announced the signing of a Heads of Agreement with Gunvor Singapore Pte. Ltd., for the supply of one million tonnes per annum of liquefied natural gas (LNG) from the Gulf LNG Project in Papua New Guinea.
The signing occurred in Port Moresby and was witnessed and supported by Prime Minister Peter O’Neill, the Gulf Governor Havila Kavo, and other cabinet Ministers.
The Gulf LNG Project in Papua New Guinea (PNG) comprises the Elk and Antelope gas fields and the planned liquefaction and associated facilities in the Gulf Province of PNG to be developed by Liquid Niugini Gas Ltd., InterOil and Pacific LNG’s joint-venture project company.
The HOA, while not binding, sets out the basis upon which the parties intend to negotiate and document terms for the purchase and sale of one million tonnes per annum of LNG, for a period of 15 years commencing in 2015, to be supplied by the proposed Gulf LNG Project in PNG. InterOil and Pacific LNG are striving to complete negotiations and execute a binding Sales and Purchase Agreement (SPA) with Gunvor by the second quarter of 2012.