Australia Pacific LNG Pty Ltd, a subsidiary of Origin Energy (ORG) and China Petrochemical Corporation have signed a Heads of Agreement establishing non-binding key commercial terms for the supply of up to 4.3 million tonnes per annum of LNG for 20 years and for Sinopec to subscribe for a 15% ownership interest in Australia Pacific LNG, thereby reducing both ConocoPhillips’ and Origin Energy’s ownership interest to 42.5%. Under the Heads of Agreement, Australia Pacific LNG and Sinopec intend to incorporate the agreed upon non-binding key commercial terms into binding agreements in the near future.
Mr Mulva said the Heads of Agreement was an important milestone for Australia Pacific LNG. We look forward to welcoming Sinopec into the Australia Pacific LNG project as an equity partner and foundation buyer of LNG. With the underpinning of Sinopec, a world-class energy company, along with the recent approval of our EIS by the Australian authorities, we now expect to rapidly progress the project to sanction, with the first LNG cargo to be delivered in 2015,” he said. Mr McCann said, “This agreement with Sinopec is testament to the scale and quality of the Australia Pacific LNG project, which is based on world-class coal seam gas reserves and resources in Queensland.”
Australia Pacific LNG Pty Limited is a joint venture between Origin Energy Limited and ConocoPhillips. 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 450 km transmission pipeline, and a multi-train LNG facility on Curtis Island, near Gladstone. ConocoPhillips is an integrated energy company with interests around the world. Headquartered in Houston, Texas, ConocoPhillips operates in more than 30 countries. The company had approximately 29,700 employees worldwide, $156 billion of assets and $189 billion of revenues as of December 31, 2010. Origin Energy is Australasia’s leading integrated energy company focused on gas and oil exploration and production, power generation and energy retailing. It is a leading producer of gas in eastern Australia, and is the largest owner and developer of gas-fired electricity generation in Australia and is a leading wholesaler and retailer of energy. China Petrochemical Corporation (Sinopec Group) is an energy and chemical company with an integrated business value chain. The company’s major business activities include: exploration, production, storage, transportation and trade of oil and natural gas, oil refining, production, transportation, trade, distribution and sales of refined products as well as production, distribution and trade of petrochemical products.