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Under the MoU, an “investment-grade International Oil Company (IOC)” will offtake up to 5.20 million tonnes per annum (MTPA) of LNG for 20 years, according to a statement by Monkey Island LNG.
MILNG said the offtake agreement represents the output of its entire first LNG train in Phase 1.
The firm is developing the 26 mtpa LNG export facility in two phases, with Phase 1 targeting 15.6 mtpa across three trains.
While the IOC’s name remains confidential at this stage, the MoU demonstrates a “growing commercial demand for MILNG’s TrueCost LNG model,” it said.
MILNG said it continues to advance commercial and engineering milestones across the project and is in active discussions with additional offtakers for remaining volumes on Phase 1.
“Partnering with a company of this caliber highlights the depth of industry confidence in MILNG’s next-generation development strategy. This agreement is an unprecedented milestone,” said Greg Michaels, CEO of MILNG. “
“Securing an MoU for up to 5.20 mtpa with an investment-grade counterparty not only validates our commercial model but also provides critical momentum as we move toward regulatory approvals and final investment decision (FID). When converted into a sales and purchase agreement, the total revenue of this deal would likely exceed $35 billion,” Michaels said.
Monkey Island LNG recently selected ConocoPhillips’ optimized cascade process liquefaction technology for its planned facility.
Houston-based McDermott also won a contract to provide front-end engineering and planning services for the project.