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Message: Altenesol Doubles Canacol Energy Ltd. Gas Supply Contract
Altenesol Completes 15 Year LNG Contract and Doubles Canacol Energy Ltd. Gas Supply Contract9:35AM ET on Friday Feb 06, 2015 by GlobeNewswire
IAHL Corporation (Other OTC:IAHL) is pleased to announce that its subsidiary, Altenesol LNG Colombia S.A.S. has finalized a 15 year take-or-pay agreement for the first LNG Train and has increased the fully executed Canacol gas supply contract from 17.5 to 35 million standard cubic feet per day ("MMscfpd") for the same time period for a second LNG Train that shall be in operation approximately 14 months from the commission of the first Train.
Adventus Fuel Inc. (AFI) has executed a 15 year take or pay contract for 14,000 million btu per day (MMbtud)) of LNG from train one of the Nataly 1 site. The approximate value of this contract over the full term is over $800 MMUSD. As an international trader, AFI's wide array of customers will enable the LNG expansion that Altenesol has envisioned to become a major Alternative Energy Architect in South America, Central America and the Caribbean. The LNG from the second Train (180,000 GPD) has been committed to AFC and predetermined arrangements are on the way to amend the existing contract as soon as possible.
Canacol Energy (CNE) has doubled the gas supply contract from 17.5 to 35 MMscfpd for a term of 15 years based on the LNG demand from AFI. This fully executed contract secures gas supply for the second train bringing total capacity of the Nataly 1LNG Plant to 360,000 GPD. When all contracts are finalized, the estimated total production value will be over $1.6 BUSD over a 15 year term. The initial agreement was broadened in scope due to the significant gas find from the recently found Clarinet discovery located on the VIM5 E&P contract. The pre drill best estimate for recoverable prospective resource at Clarinet is approximately 540 billion cubic feet (BCF) of gas. This added more time to the initial process but was necessary for our expansion.
CNE has also entered into a signed agreement option, with Altenesol, to participate in the LNG revenue chain from an equity investment of 13 MMUSD into the project in exchange for an approximate 26 percent ownership position. Under the contract Altenesol will pay U.S 4.90 /MMbtu with a 2% escalation clause over the 15 year contract period, which is a past through to the off-takers. CNE has already executed two other gas contracts previously at 5.40 / MMbtu and 8.00 / MMbtu with 3% escalation clauses to other sources.
"Altenesol provides us with a direct route to growing the South America, Central America and the Caribbean consumers and exposure to the full value chain from gas sales to LNG sales as we expand our market," said Charle Gamba C.E.O Canacol.
"We look forward to a mutually beneficial relationship with Canacol and a shared vision of the Global LNG market. We have a solid foundation in place and a blueprint to accelerate expansion. CNE's option to participate in the equity of the project opens greater expectations to Altenesol's vision as well as having a solid company supporting the proliferation of the LNG through South America, Central America and the Caribbean. We thank the many team members that have made this possible, in particular the Philippi, Prietocarrizosa & Uria law firm and our agents BTG-Pactual Colombia/MVC as well as our shareholders for their patient support as we build a solid corporation for the future. Many company developments are nearing completion and will add to our value," said Nelson De La Nuez C.E.O. Altenesol/IAHL.
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