Posted - September 3, 2013 - Hellenic Shipping News Worldwide
Following execution of a Letter of Intent (LOI) by EXMAR with LNG
Partners, LLC and LNG BargeCo BVBA for the long-term charter of a
Floating Liquefaction & Storage Unit (FLSU) to serve the BC LNG
Project near Kitimat, British Columbia, Canada, EXMAR and LNG Partners
announced today that they have taken a number of additional steps to
solidify their alliance.
As a focal point for the alliance, the two companies have invested in a
joint venture company appropriately named Marching Prospect Limited. The
new company will acquire interests in the BC LNG Project upstream of
the FSLU.
In addition, EXMAR has made a loan of CAD$50,000,000 to finance a
non-refundable deposit for construction of the FSLU. This non-refundable
deposit enabled the Project to meet a deadline set by Pacific Northern
Gas Ltd. (PNG); if the deadline had not been met or extended, this would
have resulted in the Project’s key Gas Transportation Service Agreement
(GTSA) to have been terminated and would have allowed PNG to withdraw
the full amount of the cash collateral which had previously been placed
into escrow as liquidated damages for termination of the GTSA. The
CAD$50,000,000 is the largest amount dedicated to the Project by any
participant to date.
LNG Partners has also granted EXMAR the option to purchase 50% of the
LNG cargoes to be produced by the FSLU and EXMAR has granted LNG
Partners as well as the other parties currently involved with the
Project an option to acquire an interest in the FSLU.
Various aspects of the alliance are subject to the approval of third
parties, including the BC LNG Project Steering Committee of which LNG
Partners is a voting member, and to the execution of the definitive
charter for the FSLU.
Nicolas Saverys, CEO of EXMAR, said, “EXMAR’s dealings with LNG Partners
and its principals spread out over many years. We are very pleased to
solidify our relationships with these wonderful people further by the
establishment of our joint venture company, Marching Prospect, and our
increasing role in the development the BC LNG Project.”
Tom Tatham, CEO of LNG Partners, said, “I have always had the greatest
respect for Nicolas Saverys and his colleagues at EXMAR. The joinder of
EXMAR with LNG Partners and the other current participants in the BC LNG
Project presents a formidable team for achieving the success of the
Project.”
Source: Exmar
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