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| China's SINOPEC Acquires Additional Stake And Allocation In AP-LNG |
| =Additional acquisition of 3.3 million of LNG and 10 interest |
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Australia's Origin Energy Limited, which has developed coal seam gas (CSG) to liquefied natural gas (LNG) in Australia "Australia Pacific LNG Project (AP-LNG)", announced on January 23rd that the contract was revised on January 20th among Australia's Origin Energy, the U.S. ConocoPhillips and China Petroleum and Chemical Corporation (SINOPEC) concerning additional acquisition of LNG and equity interest in the project by SINOPEC. As a result, SINOPEC will purchase total 7.6 million tons per year of LNG produced at AP-LNG, consisting of 4.3 million tpy and additional 3.3 million tpy as well as increase its stake in AP-LNG to 25%. In April 2011, SINOPEC concluded sale and purchase agreement (SPA) with Origin Energy and ConocoPhillips to buy 4.3 million tpy of LNG produced at train 1 of AP-LNG, which has production capacity of 4.5 million tpy, for 20 years from around mid-2012. Also, it decided to obtain 7.5% interest respectively from Origin Energy and ConocoPhillips and participate in the project, in which it owns total 15% interest. On top of that, in November the agreements were made among the three companies on SINOPEC' additional purchase of 3.3 million tpy, that will be produced at train 2, and 10% interest. The contracts was recently finalized. Meanwhile, besides SINOPEC, Origin Energy and ConocoPhillips already signed a contract with Kansai Electric Power Company for the sale of 1 million tpy of LNG for 20 years from 2016. Through these contracts, all the marketing of LNG at AP-LNG has been completed. The two companies plan to make a final investment decision (FID) on train 2 quickly following FID on train 1, which was made in July 2011. SINOPEC will singly purchase 7.6 million tpy of LNG, which is equivalent to 84% of 900 million tpy of LNG, the production capacity at AP-LNG. This is the largest SPA on LNG in the history of Australia. On the other hand, at Queensland Curtis LNG Project, which is operated by UK's BG, China National Offshore Oil Corporation (CNOOC) will purchase 3.6 million tpy of LNG, which nearly correspond to the production capacity at a train of the project. Furthermore, PetroChina is participating in "Arrow LNG Plant Project" operated by Australia's Arrow Energy Limited and Hunqiu Contracting and Engineering Corporation (HQCEC), the group company of China National Petroleum Corporation (CNPC) is taking part in "Fisherman's Landing LNG Project" by Australia's LNG Limited. A part of LNG produced at these project is also expected to be sold to China. |
| last modified : Fri 27 Jan, 2012 [10:29] |
