Thursday, October 9, 2014

Sinopec signs coals seam gas LNG deal with Origin Energy

The SMH reports that Origin Energys coal seam gas LNG project has taken another step forward with Sinopec signing on as both a customer and a new shareholder in the project - Sinopec inks LNG deal with Origin.
Chinas Sinopec has signed a binding agreement to buy 4.3 million tonnes of liquefied natural gas annually for 20 years from a project to be developed by Australias Origin Energy and US oil company ConocoPhillips, Origin said today.

Sinopec will also take a 15 per cent stake in the project, Origin Energy Chief Executive Grant King told reporters at a joint news conference. ... The project equity sale leaves the Australian and American firms with 42.5 per cent interest each in APLNG. Sinopec was welcomed as a joint venture partner with a signing ceremony in Brisbane today.

Resources minister Martin Ferguson said it was the biggest single LNG sales and purchase agreement by annual volume in Australian history. ‘‘Deals like this one put Australia on track to be one of the world’s largest suppliers of LNG in coming years,’’ Mr Ferguson said. ‘‘The APLNG project has the potential to significantly expand the burgeoning coal seam gas to LNG industry on Australia’s east coast and cement Gladstone’s place as a key LNG hub.’’

APLNG chairman and Origin managing director Grant King said the joint venture was engaged with potential buyers for gas from a second processing ‘‘train’’.

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