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Briefs -- Toho Gas Co., EnerGulf

Japan's Toho Gas Co. Ltd. struck a sale and purchase agreement with Mitsubishi Corp. unit Diamond Gas International Pte. Ltd. for liquefied natural gas (LNG) from Sempra Energy's Cameron LNG LLC export terminal in Hackberry, LA. The agreement is for about 200,000 tons per annum at three cargos per year for 19 years beginning in 2019. The price is indexed to U.S. natural gas prices. Toho did not disclose what U.S. index was used. Cargos are to be delivered ex-ship, with the seller arranging transport. However, Toho said destination flexibility is allowed for by prior agreement between the parties. "We...strive for LNG procurement diversification, including diversification of the price-index, supply sources and types of contracts to ensure a stable energy supply to customers at a competitive price," Toho said.

Canadian-based EnerGulf Resources Inc. said it has secured a letter of intent (LOI) with Texas South Energy Inc. to buy interests in six shallow-water prospects in the Gulf of Mexico for a total of US$800,000 and common stock. The leases are owned and operated by Texas South-related entity GulfSlope Energy Inc.; both are headquartered in Houston. Texas South CEO James M. Askew co-founded EnerGulf and is the former president of GulfSlope. Once definitive agreements are reached, EnerGulf plans to participate in one well in the Canoe prospect on Vermilion Block 378 and a second well on either the Canoe prospect or Vermilion Block 375 in the Selectron shallow prospect. EnerGulf paid US$200,000 for the interest in the Canoe prospect and agreed to pay another $200,000 for stakes in the Selectron prospect. Once the payments are completed, the producer would own a 43.75% working interest and have some cost interest obligations in both prospects. The LOI also provides for EnerGulf to pay $400,000 for an undivided 25% interest in subsalt prospects operated by GulfSlope: Alpha in Ewing Bank, including blocks 870 and 914; Beta in Ewing blocks 904 and 948; Baryon on Ship Shoal South Addition Block 348; and Proton on Eugene Island South Addition, Block 371. Under terms of a definitive agreement, EnerGulf also agreed to issue to Texas South up to seven million shares of common stock, which could be exercised for a three-year term at a price of C6 cents/share.

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