SCT&E LNG, Inc. has signed a fourth non-binding Memorandum of Understanding (MoU) for the sale of LNG from its future facility to be constructed on Monkey Island in Cameron Parish, LA. This multi-billion dollar agreement was signed with a reputable Asian energy company that owns and operates an LNG import terminal and has plans to construct additional terminals. The agreement also has an option for a future equity investment into the SCT&E LNG liquefaction terminal.
Chairman and CEO, Greg Michaels, stated, "SCT&E LNG now has over one third of the facility's overall capacity reserved via MoU's. We have seen an increase in commercial activities from clients looking to secure LNG supply beginning in 2022, and it is great to see LNG buyers confirm our business decisions and market timing."
The SCT&E LNG export project is currently scheduled to produce a total of 12 million tpa of LNG with shipments starting in 2022. The company's business model seeks to export LNG via take or pay tolling agreements and is focused on supplying LNG to meet customer needs during the ‘second wave’ of LNG demand in 2022 and beyond. Last year, SCT&E LNG signed two offtake MOU's for a total of 1.7 million tpa of LNG, and the company signed a third MoU earlier this year. This new agreement, combined with previously signed MoU's, brings the company's total offtake agreements up to 4.7 million tpa.
Scott Ray, VP of Engineering and Technology, added, "Signing this MoU provides the capacity commitment required to further advance the engineering and overall project development activities. We are currently finishing up a several month engineering study and have phased our execution plan to match capacity commitments. Currently, we are finalising negotiations with our owner's engineer and specialty contractors required to support the FERC process, and we anticipate announcing these decisions soon."
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/14042016/scte-lng-signs-fourth-mou-3033/