Canadian LNG project finds buyer for its gas

Mon Jan 21, 2013 12:12pm EST

* Golar, partner, to buy LNG from Canadian project

* Deal is the first for Canada's LNG industry

* Douglas Channel project to supply 700,000 tonnes/year

* No detail on the price to be paid

CALGARY, Alberta, Jan 21 (Reuters) - Golar LNG Ltd, which bills itself as one of the world's largest independent operators of liquefied natural-gas carriers, said on Monday it and LNG Partners LLC have agreed to buy all the output of the Douglas Channel LNG project, the first such contract for Canada's nascent LNG industry.

Golar said in a release that it and privately held LNG Partners will buy the 700,000 tonnes of LNG per year, beginning by mid-2015, to be produced by the project backed by the Haisla First Nation aboriginal group and Douglas Channel Gas Services Ltd.

No price was disclosed.

The project was the second to be awarded an LNG export license by Canadian regulators in 2011, behind one granted to the Kitimat LNG project proposed by Apache Corp and Chevron Corp.

A handful of other LNG projects have also been proposed for British Columbia's northern coast to supply Asian markets with gas from the province's massive shale-gas fields.

Backers of the rival projects include Royal Dutch Shell Plc , Malaysia's Petronas, BG Group Plc and others, making British Columbia a rival to the U.S. Gulf coast, where nine projects have been announced and one, Cheniere Energy Inc's, Sabine Pass project, is already under construction.

Golar said the deal is subject to reaching a financing agreement with the project's partners and that the project receive all needed permits for construction to begin.

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