Southern California Telephone & Energy (SCT&E) LNG has signed a memorandum of understanding (MoU) to sell one million tons per annum (mtpa) of liquefied natural gas (LNG) to an undisclosed state-owned utility company in the Asia Pacific region.


SCT&E will supply output from its facilities planned to be constructed on Monkey Island in Cameron Parish, Louisiana, US with an investment of $9.4bn.

SCT&E LNG board of directors member Richard Ieyoub said: "The signed MOU provides the state-owned utility company 20-year access to Henry Hub-indexed LNG.

"This agreement is expected to bring SCT&E LNG revenues in excess of $4bn over the life of the agreement."

The LNG deal is part of the utility’s plan to strengthen its natural gas-based power generation facilities to meet the increasing demand.

The Monkey Island LNG plant will be designed to liquefy approximately 12mtpa of natural gas.

In May, the company signed a MoU with a US-based upstream natural gas supplier for the Monkey Island project.

The company expects to sign LNG offtake MoUs with potential customers later this year.

SCT&E LNG CEO and chairman Greg Michaels said: "The SCT&E LNG project is targeting traditional and non-traditional LNG buyers who need LNG in 2021 and beyond.

"Signing this MoU validates our business strategy and the market’s desire for LNG in 2021 and the years that follow."

In December last year, the US Department of Energy (DOE) allowed SCT&E to export LNG to countries, which have free trade agreement with the country.

Image: SCT&E LNG plans to sign more LNG offtake MoUs later this year. Photo: courtesy of supakitmod /