The agreement will provide Armour with strong cash flow certainty over the early years of its transition to a production company, with contracted gas volumes of up to 3.65PJ/a.
“We are pleased to have secured an offtaker of the quality of Australia Pacific LNG as our foundation customer for the Kincora Project,”? said Armour Executive Chairman Nick Mather.
“With these agreements in place, we can move forward with confidence on the Kincora Project restart with strong known cash flows underpinning the early years of the project.”?
Phase 1 of the supply of gas to APLNG is the commencement of production, commissioning and then increased production rate to 9 TJ/d from the Kincora Project.
First gas production and commencement of gas sales is targeted for June 2017.