June 07, 2016 08:00 ET

SCT&E LNG Signs a Binding 20-Year Fixed Price Natural Gas Supply Agreement

HOUSTON, TX and CAMERON PARISH, LA--(Marketwired - Jun 7, 2016) - SCT&E LNG, Inc. announced today the company has signed a binding 20-year fixed price natural gas supply agreement to support its future Liquefied Natural Gas (LNG) facility to be constructed on Monkey Island in Cameron Parish, LA.

In May of 2015, SCT&E LNG signed a non-binding Memorandum of Understanding (MOU) with a natural gas supplier for a 20-year fixed price on natural gas from commencement of operations of the SCT&E LNG facility. Over the last several months, SCT&E LNG has been negotiating with its natural gas supplier to convert the MOU into a binding gas supply agreement. Chairman and CEO, Greg Michaels, states, "I am very pleased to announce we have successfully completed the negotiations and now have a contractual method to offer this unique natural gas supply structure to our LNG offtakers. Together with our upstream supplier, we have essentially created a 25-year hedge on natural gas for our customers, and the LNG offtake community is responding positively."

This 20-year fixed price natural gas supply offering is a first of its kind among U.S. LNG export projects. The SCT&E LNG export project is currently scheduled to produce a total of 12 mtpa of LNG with shipments starting in 2022. The company's business model seeks to export LNG via take-or-pay tolling agreements and is focused on supplying LNG to meet customer needs during the "second wave" of U.S. LNG demand in 2022 and beyond. To date, SCT&E LNG has signed four offtake MOU's for a total of 4.7 mtpa of LNG, over a third of its proposed facility's total capacity.

About SCT&E LNG:

Originally established by Southern California Telephone Company, SCT&E LNG, Inc. is a Nevada corporation and developer of an LNG export terminal. The SCT&E LNG project is currently modeled as an LNG tolling facility utilizing cryogenic technologies to liquefy natural gas for export globally. The SCT&E LNG plan is to liquefy approximately 1.60 billion cubic feet (bcf) per day of natural gas to create approximately 12 million tons per annum (mtpa) of LNG at its future facility on Monkey Island in Cameron Parish, Louisiana. Located on the Calcasieu Ship Channel, the SCT&E LNG project site is approximately 246 acres and sits 2.5 miles inland from the Gulf of Mexico. SCT&E LNG has multiple locations, with its corporate office headquartered in Houston, TX.

Safe Harbor:
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks, uncertainties, and assumptions that include expected earnings, future growth and financial performance, and typically can be identified by the use of words such as "expect," "estimate," "anticipate," "forecast," "plan," "believe", "optimistic," "intend," "will," and similar terms. Although SCT&E LNG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially from those anticipated in these forward-looking statements. A variety of factors that could cause actual results to differ materially from those contemplated above include, among others, general economic conditions, hazards customary in the oil, gas and LNG industries, weather conditions, competition and developments in oil, gas and LNG markets beyond the Company's control, the volatility of energy and fuel prices, failure of customers to perform under contracts, changes in the oil, gas and LNG markets, changes in government regulations of markets and of environmental emissions, the condition of capital markets generally, securitization of sufficient capital or a strategic business arrangement to fund its plan of operation, the Company's ability to access capital markets, management resources and infrastructure necessary to support the growth of its business, unanticipated facilities outages, adverse results in current and future litigation, failure to identify or successfully implement acquisitions (including receipt of third party consents and regulatory approvals), failure to acquire or transact on off-take agreements, and other risk factors related to the liquefied natural gas and related and connected business.

All forward-looking statements attributable to SCT&E LNG or persons acting on its behalf are expressly qualified in their entirety by these factors. SCT&E LNG undertakes no obligation to update or revise any forward-looking statements, other than as required under applicable securities laws, whether as a result of new information, future events or otherwise. The foregoing factors could cause SCT&E LNG's actual results to differ materially from those contemplated in the forward-looking statements included in this news release and should be considered in connection with information regarding risks and uncertainties that may affect SCT&E LNG's future results.

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