Eastern Star to sell stakes in projects October 14, 2010 - 8:29PM
AAP
Eastern Star Gas Ltd says it will allow customers of its planned liquefied natural gas project at Newcastle (LNGN) in New South Wales to take equity interests in the project and an associated operation.
Eastern Star on Thursday said it had entered into an agreement with Japan's Marubeni Corporation whereby Marubeni and other LNG buyers would be able to take equity both in LNGN and Eastern Star's Narrabri coal seam gas project, also in NSW.
Eastern Star said the agreement would facilitate funding for LNGN and expedite its commercialisation. Advertisement: Story continues below
Marubeni would play a lead role in buying and marketing LNG from the project, which would be fed with coal seam gas from the Narrabri project.
"A key benefit flowing from Marubeni's involvement in the LNGN project is the expertise it brings in terms of LNG offtaking, marketing and shipping and their taking an active role in securing foundation LNG buyers," Eastern Star managing director David Casey said.
"The availability of equity in the Narrabri CSG project is intended to help in achieving this goal as well as to provide development funding.
"Importantly, Eastern Star will retain a controlling interest in the Narrabri CSG project.
"By year end, a decision can be confidently taken to commence front end engineering and design for the LNGN project."
2010 AAP
ESG Price at posting:
87.5¢ Sentiment: LT Buy Disclosure: Held
