CBM Asia Development Corp. announced that it has signed a non-binding Memorandum of Understanding (MoU) with a Multinational Gas Company to conduct a technical and market study of a CBM-to-LNG facility(s) with a potential capacity of up to 50 MMcf/d in South Kalimantan, Indonesia. On completion of the Study, CBM Asia and MGC would jointly decide on the feasibility of the project with a view to entering into a definitive agreement on the establishment of a business relationship. The proposed business structure would require CBM Asia to supply natural gas whereas MGC would off-take
gas, build own and operate the LNG facility, and market/deliver the LNG to the end consumer. The potential CBM field development, gas sales contract, LNG facility construction and other related works would remain subject to local, regional and central government approvals.