Hydrocarbon Processing Copying and distributing are prohibited without permission of the publisher
Email a friend
  • Please enter a maximum of 5 recipients. Use ; to separate more than one email address.



Sinopec boosts Queensland LNG stake in Australia

01.23.2012  | 

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 LNG’s world-class coal seam gas resources and LNG facility on Curtis Island, Gladstone in Queensland. Sinopec’s ownership interest will rise to 25% from 15%.

Keywords:

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 LNG’s coal seam gas resources and LNG facility on Curtis Island, Gladstone in Queensland.

The signing of this agreement finalizes the marketing of the second train, the companies said.

This agreement increases Sinopec’s 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 Sinopec’s ownership interest to 25% from 15%.

As a result, ConocoPhillips’ and Origin Energy’s 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 Sinopec’s energy portfolio, and will help us to ensure long term gas supply for the growing demand in the Chinese market,” said Sinopec chairman Mr. Fu Chengyu.

“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 LNG’s existing domestic business, which currently provides more than 40% of Queensland’s existing natural gas requirements, the company said.



Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.

Related articles

FEATURED EVENT

Boxscore Database

A searchable database of project activity in the global hydrocarbon processing industry

Poll

Should the US allow exports of crude oil? (At present, US companies can export refined products derived from crude but not the raw crude itself.)


83%

17%




View previous results

Popular Searches

Please read our Term and Conditions and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2013 Hydrocarbon Processing. © 2013 Gulf Publishing Company.