COMMERCIALISATION
CHINA LNG

China LNG Project

Since signing the LNG Sales Agreement with Shantou Sino Energy on 29 March 2011, the Company is continuing to advance business and strategic initiatives to secure the necessary reserves required to meet that contract. The LNG Sales Agreement between Icon Energy and Shantou SinoEnergy agreed that Icon Energy will supply 40 million tonnes of LNG to Shantou Sino Energy over 20 years.

Sino Gas GSA signing

Guodian Corporation and the Shantou Sino Energy / Icon Energy LNG Sales Agreement

While the LNG Sales Agreement is with Shantou SinoEnergy, China Guodian Corporation has taken a direct interest in its LNG Receiving Terminal Project as a joint venture partner.

Guodian is a Government owned corporation with an asset backing in excess of $USD 90 billion and is one of China's largest electric power generators. Guodian's interest represents support from a major electric power generation company operating in China with the backing of the Chinese Government.

Chinese Delegation Site Visit - Aug 2011

Shantou Sino Energy, Chinese Regional Government Officials and Guodian South Corporation Delegation visit to Icon Energy

In early August 2011, Icon Energy Limited welcomed a Chinese Delegation led by Mr Zhang Zulin Director of Energy Bureau, Development and Reform Commission Guangdong Province and consisting of representatives from Shantou SinoEnergy Co. Ltd (Shantou SinoEnergy), Guodian South Corporation (Guodian) and the City of Shantou Nan'ao to Icon Energy's offices to discuss and further progress the LNG Sales Agreement.

The goodwill between the various parties involved on both the Chinese and Australian ends of the arrangement was clearly apparent during the Delegation's time here in Australia. Presentations were delivered in Mandarin, while others were translated, such as the speech delivered by Gold Coast Mayor, Ron Clarke MBE. All parties remain fully committed to the realisation of the LNG Sales Agreement.

The Icon Energy operational team working with Shantou Sino Energy, viewed the visit as building the commercial relationship while also providing an exchange of information. Both sides are committed to progressing the required steps towards satisfying the LNG Sales Agreement.

Icon Energy continues its strategic and operational planning for the supply of the LNG with our major export customer, which in turn is charged with securing the energy needs of a rapidly growing residential and industrial market within Guangdong Province in Southern China.

Chinese Delegation Head Office Visit - Aug 2011