Australia Pacific LNG and Sinopec amended their existing LNG
sales agreement for the supply of an additional 3.3 million tpy
of LNG through to 2035 from Australia Pacific LNGs coal
seam gas resources and LNG facility on Curtis Island, Gladstone
signing of this agreement finalizes the marketing of the second
train, the companies said.
This agreement increases Sinopecs existing purchase
commitment from Australia Pacific LNG from 4.3 million tpy to
7.6 million tpy of LNG, representing the largest LNG supply
agreement in Australian history.
The parties have also agreed for Sinopec to subscribe for
additional shares in Australia Pacific LNG,
which on completion will raise Sinopecs ownership
interest to 25% from 15%.
As a result, ConocoPhillips and Origin Energys
respective ownership interests will be reduced to 37.5% each,
the companies said.
The key commercial terms of the binding agreements are
consistent with the terms of existing LNG
sales from the project and the deal signed with
Sinopec in April 2011, officials said.
The sale and purchase agreement with Australia Pacific
LNG is an important part of Sinopecs energy portfolio,
and will help us to ensure long term gas supply for the growing
demand in the Chinese market, said Sinopec chairman Mr.
Today is another important milestone for the Australia
Pacific LNG project added ConocoPhillips
CEO Jim Mulva. Reinforcing the strong group of companies
overseeing the Australia Pacific LNG project, we are pleased that Sinopec
will have an increased shareholding of 25%.
These agreements will build on Australia Pacific LNGs existing domestic
business, which currently provides more than 40% of
Queenslands existing natural
gas requirements, the company said.