Sinopec signs LNG purchase deal with Australia's Australia Pacific LNG
21 January 2012
Chinese oil giant China Petrochemical Corp, known as Sinopec yesterday signed a deal with Australia Pacific LNG Pty Ltd to purchase 7.6 million tons of liquefied natural gas (LNG) annually for 20 years.
The deal is an amendment to the purchase deal it signed with Australia Pacific LNG in April to buy 4.3 million tons of LNG for 20 years starting in mid-2015.
Under the new deal, Sinopec will also raise its stake in APLNG from 15 per cent to 25 per cent. Following this Australia Pacific LNG's other partners ConocoPhillips and Origin Energy's stakes will fall to 37.5 per cent.
"We are pleased to expand our partnership with Australia Pacific LNG. The agreement will help to further meet both China's and Sinopec's energy demands, and to ensure the supply of clean energy for Chinese consumers," said Fu Chengyu, chairman of Beijing-based Sinopec in a statement.
APLNG is a three-way joint venture between ConocoPhillips, Australian energy company Origin Energy and Sinopec that currently meets 40 per cent of Queensland state LNG demand.
Origin is responsible for construction and operation of the project's gas fields and main gas transmission pipeline, while ConocoPhillips is responsible for the construction and operation of the Project's LNG facility.
APLNG is already the largest producer of coal seam gas in Australia, supplying gas to power stations to produce lower emissions electricity, major industrial customers, homes and businesses in South East Queensland.