Further to the attached Press Release from Delta Offshore Energy Pte Ltd (DeltaOE), Liquefied Natural Gas Limited (ASX: LNG, OTC ADR: LNGLY) (LNGL or the Company) wishes to congratulate Delta Offshore Energy on the receipt of the Investment Registration Certificate (IRC) for their 3,200-megawatt LNG-to-power project in Vietnam's Bac Lieu Province (Bac Lieu Project).
LNGL understands that the IRC is the final regulatory approval required for the Bac Lieu Project.
LNGL also wishes to express gratitude to the members of the Bac Lieu Province People's Committee and the National Steering Committee on Vietnam's Energy Development for their approval of DeltaOE's IRC following the recent inclusion of the Bac Lieu Project in Vietnam's Power Development Plan 7 Revised (PDP7R).
LNGL and DeltaOE have signed a non-binding memorandum of understanding (MOU) for the delivery of 2 million tonnes per annum (mtpa) of U.S. liquefied natural gas (LNG) from Magnolia LNG (Magnolia) to the Bac Lieu Project.
DeltaOE is negotiating a 25-year power purchase agreement (PPA) with Electricity Vietnam Group (EVN) to underpin the Bac Lieu Project, and concurrently progressing a binding sale and purchase agreement (SPA) with LNGL for 2 mtpa from Magnolia. The SPA will (once agreed) remain subject to LNGL making a 'Financial Investment Decision' as described in LNGL's announcement dated October 11, 2019.
LNGL Executive Chairman, Managing Director, and CEO, Greg Vesey commented: 'With significant end-user LNG demand, Vietnamese and Southeast Asian customers are a major priority for LNGL, and we will continue our efforts to grow our potential commercial opportunities in the region beyond the existing MOU. Delta Offshore Energy is leading by example becoming the first registered energy infrastructure project in Vietnam to be fully supported through foreign direct investment, mainly from the United States. We remain very pleased to be part of this momentous undertaking.'
Contact:
Mr Micah Hirschfield
Tel: +1 713 815 6920
Email: mhirschfield@lnglimited.com
ABOUT MAGNOLIA LNG PROJECT
Magnolia proposes to construct and operate up to four liquefaction production trains, each with a capacity of 2.2 mtpa or greater using the Company's patented OSMR LNG process technology. Construction and operation includes two 160,000 m3 full containment storage tanks, ship, barge, and truck loading facilities, and supporting infrastructure. The lump sum, turnkey (LSTK) EPC contract includes all elements of the project necessary to bring the facility into full guaranteed production operations. Magnolia LNG is fully permitted, having received its FERC Order and both FTA and non-FTA approval from the DOE. Final investment decision and initiation of construction are expected upon execution of sufficient offtake agreements to support financing.
ABOUT LIQUEFIED NATURAL GAS LIMITED
LNGL is an ASX listed company (Code: LNG and OTC ADR: LNGLY) whose portfolio consists of 100% ownership of the following companies: Magnolia LNG LLC (Magnolia LNG), a US-based subsidiary, which is developing an 8 million tonnes per annum (mtpa) or greater LNG export terminal, in the Port of Lake Charles, Louisiana, USA; Bear Head LNG Corporation Inc. (Bear Head LNG), a Canadian-based subsidiary, which is developing an 8 - 12 mtpa LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion; Bear Paw Pipeline Corporation Inc. (Bear Paw), which is proposing to construct and operate a 62.5 km gas pipeline lateral to connect gas supply to Bear Head LNG and LNG Technology LLC, a subsidiary which owns and develops the Company's OSMR LNG liquefaction process, a midscale LNG business model that plans to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects.
Disclaimer
Forward-looking statements may be set out within this correspondence. Such statements are only predictions, and actual events or results may differ materially. Please refer to our forward-looking statement disclosure contained on our website at www.LNGLimited.com.au and to the Company's Annual Report and Accounts for a discussion of important factors that could cause actual results to differ from these forward-looking statements. The Company does not undertake any obligation to update publicly, or revise, forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
LIQUEFIED NATURAL GAS LIMITED