(EnergyAsia, April 28 2011, Thursday) — Australia Pacific LNG Pty Ltd has agreed to supply China Petroleum & Chemical Corporation (Sinopec) 4.3 million tonnes of liquefied natural gas (LNG) per year for 20 years from its coal seam gas (or coalbed methane) resources and proposed LNG facility on Curtis Island in Gladstone in Queensland state. ($1 =A$0.94).
Sinopec will also pay US$1.5 billion for a 15% stake in Australia Pacific LNG which is developing the A$35 billion coal-seam-gas to LNG project. Australia’s Origin Energy and ConocoPhillips of the US, the current equal joint owners, will reduce their individual stakes in the company to 42.5% after the Sinopec buy-in.
The Australia Pacific LNG project consists of the development of its gas fields in the Surat and Bowen basins in south western and central Queensland state, the construction of a pipeline linking the gas fields to an LNG facility in Gladstone, and the development of an LNG facility on Curtis Island to export cargoes to Asia.