ICON Energy and China’s Shantou SinoEnergy have agreed to extend the end date for conditions covering a gas sales agreement signed by the companies in 2011.

Icon said the new date for completion of conditions was now on or before 30 June, 2015.

The gas sales agreement agreed up will cover 40 million tonnes of liquefied natural gas over 20 years, or 2 Mt per annum.

The agreement also states that Shantou will have to obtain necessary approvals from Chinese Government Authorities to allow the construction and operation of the Receiving Facilities and the purchase and import by it of LNG under the LNG Sales Agreement.

Icon Energy managing director Ray James said it was delighted the relationship with Shantou was ongoing.

“The successful extension of the Shantou SinoEnergy Gas Sales Agreement allows Icon Energy to fully investigate a number of gas supply and delivery options in Australia,” he said.

With demand for LNG in Asia Pacific region set to almost double, from 175 Mtpa in 2013 to 325 Mtpa in 20251, Mr James said the company was well positioned to meet some of this demand over the coming years.

Icon’s ATP 855 permit in the Cooper-Eromanga basin hosts recoverable prospective resources of 28Tcf.

Icon has a 35.1 per cent stake in the permit while Beach Energy (operator) and Chevron Australia hold a 46.9% and 18% stake respectively