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Mitsubishi Joins Consortium to Develop LNG Project in Nigeria

06-13-2008

Mitsubishi Corp. will launch a feasibility study with its two partners, Flex LNG Ltd. and Peak Petroleum Industries Nigeria Ltd., for Nigeria's first floating liquefied natural gas (LNG) project.  The project is aimed at drawing some 1.5 million tonnes (1.65 million tons) of LNG a year over a 15-year period, with the first commercial LNG cargo planned for second half of 2011.

The three companies recently signed a heads of agreement to jointly develop and market the LNG project.  Flex LNG and Peak Petroleum first entered into a partnership for a LNG project last year after signing a memorandum of understanding for the joint development of the Bilabri and Orobiri natural gas reserves offshore Nigeria using FLEX LNG's LNG Producer concept.

Flex's CEO Philip Fjeld said Mitsubishi intends to become an equity participant in the LNG Producer as well as having an integrated role in the upstream component of the project.  Flex previously indicated plans to reach a final investment decision on the project in 2008.