The Directors of Liquefied Natural Gas Ltd. signed a Technology Memorandum of Understanding with SK Engineering and Construction (SKEC), in relation to the Company's "Optimized Single Mixed Refrigerant" (OSMRTM) LNG processing technology (Australian Patent Application No. 2007903701).
The Agreement provides the framework for SKEC and the Company to establish a technology joint venture, owned 50% each, to:
The Company's Managing Director, Maurice Brand, said that "the Agreement was the result of a comprehensive review of the OSMRTM process technology by SKEC and is a logical and complimentary extension of the existing relationship between SKEC and the Company in relation to the Gladstone LNG Project. The Agreement also lays the foundation for SKEC and the Company to collaborate on other LNG project opportunities."
Representatives of SKEC were in Queensland this week to:
SKEC's Vice President, Yang-Kyoo Ju, said "SKEC is 100% committed to the Gladstone LNG Project and excited at the opportunity to participate in this leading edge LNG project. Not only is it likely to be the first coal seam gas to LNG project in the world but with the application of the OSMRTM process technology it has the potential to set new industry benchmarks as to plant cost, efficiency and carbon emissions."
"SKEC already has a successful working relationship with LOR and the SKEC-LOR consortium provides the experience and competencies necessary to deliver this world class LNG project," Yang-Kyoo Ju further said.
The execution of the Agreement represents another major milestone for the Gladstone LNG Project in recent times; including:
Licence Agreement: Between Gladstone Ports Corporation Limited and Gladstone LNG Pty Ltd, which:
Gas Supply: Arrow Energy Limited's July 31, 2008 announcement of a major increase in its 2P gas reserves, including uncommitted gas reserves available for the Gladstone LNG Project, and expectation of another material increase in 2P gas reserves by the end of this year. Engineering and Construction: Execution of an Engineering and Construction Services Contract with SKEC and Pre-Construction Services Agreement with LOR, who will now combine resources to provide the overall FEED, detailed engineering and pre-requisite
Environmental Approvals: As announced earlier this month, the Company submitted its Environmental Impact Statement to the Environmental Protection Agency of Queensland. A significant step forward in the environmental approvals process for the Gladstone LNG Project and is a prerequisite to obtaining a number of licenses and approvals that the Company will require in early 2009, to achieve financial close and commence construction.
LNG Offtake: The Company has received detailed LNG offtake and Project investment proposals from several interested LNG buyers. All shortlisted LNG buyers are of a bankable credit standing and have existing LNG purchasing and trading activities, together with access to LNG ships. Final LNG buyer selection is expected during the September 2008 quarter.
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