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|FID Made On 2nd Train Of Australia Pacific LNG Project|
|=Origin and its partner plan to sell their stakes further|
Final investment decision (FID) was made on the second train of the coal seam gas (CSG) to liquefied natural gas (LNG) project in Australia "Australia Pacific (AP) LNG Project, capable of producing 9 million tons per year of LNG.|
Australian Origin Energy Limited, which has developed the project, announced on July 4th that Origin and its project partners, the United States ConocoPhillips and China Petrochemical Corporation (SINOPEC) approved to develop the second train.
Unlike the situation when the FID was reached on the first train, there is no change to the development schedule. 4.5 million ton-per-year No.1 train is expected to begin producing LNG around the middle of 2015 and 4.5 million tpy No.2 train in the first half of 2016.
Meanwhile, assuming that the cost required until when the second train starts production will remain unchanged except difference on account of exchange rate fluctuation, Origin has left the estimate of US$20 billion as it is, which had been previously estimated for the cost.
Origin and ConocoPhillips have held 37.5% stake in AP LNG Project respectively and SINOPEC acquired 25% stake in the project. When SINOPEC concluded sale and purchase agreement (SPA) to buy 4.3 million tpy of LNG from the first train, it planned to obtain 15% interest in AP LNG Project. However, afterwards it agreed with Origin and ConocoPhillips to revise the contract for the purpose of additionally purchasing 3.3 million tpy of LNG and obtaining 10% equity share. The approval procedure for transfer of shares will soon be completed.
On the other hand, Origin and ConocoPhillips came to an agreement to further sell their interest in AP LNG Project. Origin plans to sell about 7.5% equity share and retain around 30% stake in the project.
SINOPEC will purchase 7.6 million tpy of LNG, consisting of 4.3 million tpy from No.1 train and 3.3 million tpy from No.2 train which occupies large portion of production capacity of the project. In the meantime, Kansai Electric Power Company signed SPA with Origin and the partners to purchase 1 million tpy of LNG, that will be produced at the second train. As a result, Origin and its partners completed the LNG marketing on AP LNG Project.
|last modified : Tue 10 Jul, 2012 [15:48]|