Another giant LNG deal with China

Gold Coast “�based Icon Energy has signed a memorandum-of understanding with Shenzhen Sino Industrial Development to supply 40 million tonnes of liquefied natural gas (LNG) over 20 years.

In an export deal valued between $A23 billion and $A32 billion, Icon would commence its first shipments of liquefied natural gas (LNG) to China in 2014.

Coal seam gas is one of the cleanest of fossil fuels.� In addition to its low greenhouse gas impact, the sector may also have some answers for another environmental problem “� water shortages.� Water is a by-product of CSG production and much work is being done on reclaiming CSG by-water to make it fit for a variety of purposes.

CSG production in Queensland has developed more rapidly than most analysts expected and already provides more than 70% of the state`s gas supplies.

The Gas Sale Agreement (GSA), scheduled for negotiation and execution by 31 August this year, would position Icon as the exclusive supplier of 40 million metric tonnes of LNG.

Managing Director, Mr �Ray James said that Icon intended to meet its contractual requirements from its current tenements in Queensland and in South Australia; through arrangements with existing joint venture partners; and via new tenements and farmin agreements.

Mr James said today that the agreements marked a logical next step in Icon`s evolution from gas explorer to producer and supplier.

“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.”�