(EnergyAsia, November 24 2011, Thursday) — Australia Pacific LNG Pty Limited said it has signed an agreement for the annual supply of one million tonnes of liquefied natural gas to Japan’s Kansai Electric Power Company for 20 years.

The Australian firm will supply the LNG from its planned export terminal on Curtis Island in Queensland from mid-2016.

The agreement is conditional on Australia Pacific LNG making a final investment decision on the second train, expected for early 2012.

The Australia Pacific LNG project was sanctioned in July 2011 for an initial 4.5 million tonnes per annum LNG production train and infrastructure to support a second train of the same size.

The company, an incorporated joint venture between Origin Energy (42.5%), ConocoPhillips (42.5%) and China’s Sinopec (15%), is constructing the LNG train, with production to start in 2015.

Australia Pacific LNG chairman, Grant King, who is also Origin Energy managing director, said:

“This binding heads of agreement is another significant milestone for the Australia Pacific LNG project. The signing of a long-term supply agreement demonstrates further momentum towards a two train development, with detailed negotiations continuing with sufficient customers to support a second train final investment decision.”

ConocoPhillips’ senior vice president for exploration and production, Ryan Lance said:

“Kansai Electric is an experienced LNG buyer, and we look forward to supplying LNG to help support Japan’s energy requirements.”

Separately, US engineering giant Honeywell said it has been selected by Bechtel International Inc to design and implement automation and safety solutions for the LNG terminal.

Bechtel selected Honeywell Process Solutions (HPS) to provide vital integrated control and safety systems (ICSS) at the new facility to convert coal seam gas (CSG) in the Surat and Bowen basins to LNG for export to Asia and to meet domestic demand in Queensland.

Frank Whitsura, vice president of Honeywell’s HPS Projects and Automation Solutions, said:

“Honeywell solutions will provide Australia Pacific LNG with a safe and reliable system from day one. We design our systems to integrate seamlessly with other Honeywell and third party products and solutions, which increases efficiency and reduces risk on a project so that it is  completed on time and on-budget  the best possible outcome for all.”