Petroleum and gas explorer Icon Energy Ltd
(ASX:ICN) has signed a memorandum of understanding with a subsidiary of China’s SinoGas Group on a deal worth close to $32 billion for the supply of liquefied natural gas.
The exclusive deal with Shenzhen Sino Industrial Development Company is for the delivery of 40 million tonnes of liquefied natural gas over a 20 year period.
Icon says detailed terms of the gas sale agreement are to be negotiated and executed by August 31, 2010.
The company says the deal positions Icon Energy as the exclusive supplier of around 2.2 trillion cubic feet of LNG over the 20 year life of the agreement.
Icon says it plans to meet the contractual requirements via its current tenements in South Australia and Queensland, arrangements with existing joint venture partners, new farm-in agreements and the securing of additional tenements.
Icon Energy posted a loss for the 2009 calendar year.
