USA: United LNG, Petronet Reach Main Pass Energy Hub Agreement

USA United LNG, Petronet Reach Main Pass Energy Hub Agreement

United LNG, LP and Petronet LNG Limited, India’s largest LNG importer, announced a conditional agreement has been reached to supply LNG from the Main Pass Energy Hub™ LNG project in the Gulf of Mexico.

The agreement was signed by Petronet LNG Managing Director & CEO, Dr. A.K. Balyan and Stephen Payne, Chairman & General Partner of United LNG, of the United States.

The parties said they would continue working toward a final Sales Purchase Agreement to conclude the purchase and sale by the year’s end. The agreement will provide for United LNG to supply a minimum of 4 MTPA (million tons per annum) of LNG with the potential for additional supply, for a 20-year term thru the Main Pass Energy Hub™ which is being jointly developed by United LNG and Freeport McMoRan Energy.

Additionally, Petronet is exploring the possibility to purchase a stake in United LNG’s liquefaction facilities located in the Gulf of Mexico and partner with United LNG, as this has become the industry standard in recent years in order to reduce project risk. The parties said the commercial details are confidential.

Petronet LNG Managing Director & CEO, Dr. A.K. Balyan said, “Petronet LNG is delighted to have executed our first USA based LNG supply off take agreement and looks forward to moving ahead with United LNG and their strong JV partner Freeport-McMoRan Energy. As both a reliable and low cost LNG supplier, the USA is now the world’s prime target to secure LNG, and this agreement with United is another big step forward to meeting India’s growing demand for clean energy.”

Stephen Payne, Chairman & General Partner of United LNG, LP said, “Petronet is our largest single LNG buyer and our second customer on the Sub-Continent, and we are proud to be working with them. United LNG now has supply agreements totaling 12 mtpa, which represent half of our total off take capacity. At this week’s LNG conference, we made significant progress negotiating with 12 potential customers on 3 continents and we expect to be fully subscribed very soon.”

Furthermore, Freeport-McMoRan Energy LLC, a subsidiary of McMoRan Exploration and United LNG are engaged in a JV effort to utilize McMoRan’s Main Pass Energy Hub™ (MPEH™) as a facility/terminal to receive, store and condition natural gas for off loading to Coastal Liquefaction Storage and Offloading vessels for export. Main Pass has received a Free Trade Agreement (FTA) LNG export license from the U.S. Department of Energy for the facility to export 24 million tonnes per annum (which is the single largest LNG export license granted by the DOE); a Non-FTA application has also been filed and is awaiting DOE approval.

LNG World News Staff, April 25, 2013

Share this article

Follow LNG World News

Events>

<< Jul 2016 >>
MTWTFSS
27 28 29 30 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

European Autumn Gas Conference

EAGC will continue to explore micro commercial, strategic and political influences which are driving the EU Natural Gas and LNG agenda…

read more >

World LNG & Gas Series: 8th Asia Pacific Summit

The 8th Annual World LNG & Gas Series: Asia Pacific Summit is back in September…

read more >

Gas to Liquids

The volatile oil price has had a dramatic impact on the Gas to Liquids market and some large-scale projects’ operators have struggled to adapt to this unsteady landscape. Over the last 12 months, we have witnessed a few promising projects halt or even shut down altogether. However, whilst some doors have had to close, other doors are opening with interesting emerging markets on the new GTL field. A few companies have discovered ways to significantly reduce operating costs and prove to be commercially viable despite the current economic climate.

Against this backdrop, SMi’s 19th annual Gas to Liquids conference will discuss how GTL companies can work with the tumbling oil price and how they can build robust strategies and create effective alternative solutions to enable them to weather the storm. The programme will have a special focus on small-scale GTL projects, giving you the chance to hear first-hand success stories from leading GTL operators. The two-day event will provide the ideal platform for experts to discuss with peers what companies need in place in order to overcome today’s challenges, with leading industry figures dissecting cutting edge topics, including project financing, marketing of GTL projects and innovative alternative applications of GTL plants.

For more information and to register online, visit: www.gas-to-liquids.co.uk

read more >

The Rio Oil & Gas Conference 2016

Rio Oil & Gas 2016 will address topics from energy efficiency to sustainable Oil & Gas industry…

read more >