Australia Pacific LNG has signed an agreement with Sinopec for the supply of an additional 3.3 million tonnes per annum (mtpa) of LNG through until 2035.
The LNG will be supplied from Australia Pacific LNG’s coal seam gas resources and LNG facility on Curtis Island, Gladstone in Queensland, Australia.
The current agreement is an amendment to their existing LNG sales deal thereby finalising the marketing of the second train.
Sinopec will increase its purchase order from the previous 4.3 mtpa to 7.6 mtpa of LNG.
In addition, both the companies have signed a subscription agreement for Sinopec to subscribe for additional shares in Australia Pacific LNG, which on completion will raise Sinopec’s ownership interest from 15% to 25%.
The subscription agreement will result in reduction of ConocoPhillips and Origin Energy’s respective ownership interests.
The commercial terms of the binding agreements are in line with the terms of existing LNG sales from the project and the subscription agreement signed with Sinopec in April 2011.
The subscription agreement is subject to approvals by the Chinese Government and in Australia, the Foreign Investment Review Board.
The amendment to the sales agreement is conditional on Australia Pacific LNG reaching a final
investment decision on the second train.
