Exmar and LNG partners have firmed up their letter of intent to work together building and operating a Floating Liquefaction & Storage Unit (FLSU) for the BC LNG Project in Canada.
Exmar has made a CAD$50m ($47.4m) loan as a non-refundable deposit for construction of the FLSU, the largest commitment to the project by any participant to date.
The 0.7m ton per annum capacity FLSU will be completed in the first quarter of 2016 and, subject to the approval of the BC LNG Project steering committee, chartered to the project for 20 years, with two five year options attached.
The two companies have invested in Marching Prospect Limited, a joint venture company that will acquire interests in the BC LNG Project, upstream from the FLSU.
LNG Partners has granted EXMAR the option to buy 50% of the the FLSU's LNG cargoes while LNG Partners and other parties involved in the deal have options to acquire interests in the FLSU from Exmar.
Exmar Shipmanagement will operate and maintain the FLSU as well as provide services for receiving gas and loading LNG.
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."
"I have always had the greatest respect for Nicolas Saverys and his colleagues at Exmar. The joining 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," added Tom Tatham, ceo of LNG Partners.
Certain aspects of the alliance are yet to be cleared by necessary third parties, including the BC LNG Project steering committee.