In an export deal valued between AUD23bn and AUD32bn, Icon will commence its first shipments of liquefied natural gas (LNG) to China in 2014.
The gas sale agreement, scheduled for negotiation and execution by August 31 this year, will position Icon as the supplier of 40 million metric tonnes of LNG or 2.2 trillion cubic feet.
Sino Gas also plans to construct an AUD727m LNG receiving terminal capable of ultimately loading and off-loading up to three million metric tonnes per annum, located in Budaiao Bay, Nanao Island near Shantou City.
The LNG terminal project, designed to meet local gas demand, was approved by local government in January and then forwarded to the National Development and Reform Commission for final approval.
Icon intended to meet its contractual requirements from its tenements ATP 626P, ATP 855P and ATP 849P in Queensland and PEL 218 in South Australia, through arrangements with existing joint venture partners, and via new tenements and farmin agreements, the company said.
Ray James, managing director of Icon, said: “As a wholly-owned Australian company, we’re delighted to be negotiating a gas sale contract in China that ranks close to the recent announcements of our multi-national competitors.”
