As per the heads of agreement signed, Sinopec will buy 4.3 million tonnes per annum (MTPA) of LNG for 20 years starting 2015 from Australia Pacific’s LNG development project in Queensland.
Australia Pacific is an equal joint venture between Texas-based ConocoPhillips and Sydney-based Origin Energy.
The agreement also specifies terms under which Sinopec will subscribe for a 15% equity stake in APLNG, with ConocoPhillips and Origin Energy each reducing its interest to 42.5%.
In addition to the signing of the heads of agreement, the APLNG project received Federal Environmental approval this week.
The Australia Pacific LNG project includes the development of Australia Pacific LNG’s substantial coal seam gas resources in the Surat and Bowen basins over a 30-year period, a 450km transmission pipeline, and a multi-train LNG facility on Curtis Island, near Gladstone.
Initial plans for the LNG facility are focused on developing two LNG trains, each with a nameplate capacity of approximately 4.5MTPA of LNG.
