Exmar, PEP to Terminate Liquefaction and Storage Agreement

EXMAR NV reported Tuesday that the company and Pacific Exploration and Production (PEP) have agreed to terminate a Liquefaction and Storage Agreement, originally executed in March 2012 for a term of 15 years from delivery of a floating liquefaction unit (CFLNG) with a liquefaction capacity of approximately 0.5 million tons per annum of Liquefied Natural Gas (LNG) and a storage volume of 0.5685 million cubic feet (16,100 cubic meters) (the Tolling Agreement).

Since the execution of the Tolling Agreement the domestic natural gas market in Colombia and international LNG market have changed substantially making the liquefaction of LNG in Colombia no longer economic for PEP.

The Settlement Agreement stipulates a termination fee payable by PEP to EXMAR in monthly installments from March 2016 until June 2017.

By virtue of the Settlement Agreement as of March 3, 2016, any and all obligations in connection with the Tolling Agreement have been terminated, except for customary survival clauses (e.g. confidentiality and dispute resolution) and makes the CFLNG available for other projects around the world. EXMAR is actively negotiating new employment of the CFLNG with several counterparts and the CFLNG will be delivered in the second Quarter 2016 from the Wison shipyard in Nantong (China).

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Sr. Facilities Engineer
Expertise: Facilities Engineer
Location: Houston, TX
 
Instrument & Controls Engineer
Expertise: Instrument & Controls Engineer|Maintenance Engineer|Plant Operations Engineer
Location: Sulphur, LA
 
Operator, Pipeline
Expertise: Instrumentation Technician|Oil Terminal / Storage Management|Pipeline Operator
Location: Freeport, TX
 
search for more jobs

Brent Crude Oil : $42.7/BBL 1.77%
Light Crude Oil : $41.14/BBL 1.83%
Natural Gas : $2.87/MMBtu 7.49%
Updated in last 24 hours