Levant LNG signs Breakthrough Floating LNG Agreement with Gazprom Marketing
and Trading Switzerland AG, a Landmark Deal that will Propel Natural Gas
SEOUL, South Korea, Feb. 26, 2013
SEOUL, South Korea, Feb. 26, 2013 /PRNewswire/ --Levant LNG, a subsidiary of
Pangea LNG B.V., today announced it has executed a historic Heads of Agreement
("HOA") with Gazprom Marketing and Trading Switzerland AG ("GM&T CH"), a
subsidiary of major gas industry leader Gazprom, in which the parties agreed
to negotiate in good faith a binding agreement for the sale of the LNG to be
produced at the Floating LNG (FLNG) facility.
The SPA will be for LNG sales based on feed gas provided by the Tamar
Partnership, an upstream consortium including Noble Energy Mediterranean Ltd,
Isramco Negev 2 Limited Partnership, Delek Drilling Limited Partnership, Avner
Oil Exploration Limited Partnership, and DorGas Exploration Limited
Partnership. These companies are the owners and producers involved in the
discovery of significant natural gas resources in the Tamar and Dalit fields
The execution of this deal will be a breakthrough for the LNG industry,
representing what will become the first-ever SPA from a FLNG project to a
third-party independent buyer without involvement of a major IOC. The
execution of the HOA is a major step underpinning the project's financial
feasibility, and will create the world's first project-financed FLNG export
In November 2012, Levant LNG executed a Cost Sharing Agreement (CSA) with
Tamar Partners to develop a FLNG export terminal off the coast of Israel.
Specifically, this HOA defines the terms for Levant LNG to sell 3 Million Tons
per annum of LNG, being the estimated total output from the FLNG facility, to
GM&T CH on a FOB basis for a period of 20 years.
Today's momentous agreement provides that the parties shall agree upon the
form of financial support that GM&T CH will provide to the project partners,
in such scope and terms to be agreed by the parties. These and other
negotiated terms of the commercial transaction provide key building blocks for
financing of the FLNG project and provide great progress towards a Final
Investment Decision (FID), expected by the end of 2013.
"The Pangea business model offers the opportunity for all stakeholders to take
part in the value enhancement from gas production through the FLNG/midstream
solution to the final off take of LNG," said Kathleen Eisbrenner, Pangea CEO.
"Pangea LNG opens the potential for national oil companies and owners of small
to medium size gas reserves to monetize stranded gas and take part in the
value creation in the entire value chain."
Alongside the execution of the HOA, Levant LNG is launching the FEED for LNG
production from the Tamar field, which will become Israel's first LNG export
Pangea LNG B.V. is a holding company with two major FLNG projects currently
under development: the South Texas LNG Export Project on the Texas Gulf Coast,
which recently earned U.S. Department of Energy approval to export LNG to Free
Trade Agreement (FTA) nations, and awaits approval to export to non-FTA
countries; and the Tamar Project, 60 miles off the shore of Israel. Pangea LNG
is a developer of floating and land-based liquefaction projects which are
designed to accelerate and support the monetization of gas reserves,
particularly those that are stranded or have limited access to markets.
Pangea LNG brings together a team that generated the innovations that are at
the foundation of the floating LNG sector. DSME, the majority owner of Pangea,
is one of the world's leading shipbuilders and a contractor for major energy
companies providing them with offshore platforms, drilling rigs and floating
production units. The company builds special purpose vessels and specializes
in LNG carriers. It constructed nine of the 11 floating LNG regasification
vessels now in service.
Pangea LNG brings together a team that was responsible for generating the
innovations that are at the foundation of the floating LNG sector. Pangea LNG
B.V. is owned by NextDecade International, D&H Solutions AS and DSME. For more
information, please visit www.PangeaLNG.nl.
SOURCE Pangea LNG B.V.
Contact: Industry, Alfonso Puga, Chief Commercial Officer, Pangea LNG,
apuga@PangeaLNG.nl, or Media, Tom Eisbrenner, Eisbrenner Public Relations,
Press spacebar to pause and continue. Press esc to stop.