China Petrochemical Corporation (Sinopec) today said that it has signed a 20-year binding purchase agreement with Australia Pacific LNG to raise annual LNG purchases from 4.3 million tonnes to 7.6 million tonnes.
The company also signed an equity subscription deal to increase its stake in APLNG to 25 percent.
Sinopec Chairman Fu Chengyu said: “ 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 .”
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 530 km transmission pipeline, and a multi-train LNG facility on Curtis Island, near Gladstone.
The Australia Pacific LNG project was sanctioned in July 2011 for an initial LNG production train and infrastructure to support a second train.
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LNG World News Staff, January 20, 2012; Image: APLNG