Australia Pacific LNG Pty Ltd 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%.
The Heads of Agreement was signed earlier today in Beijing by Mr Jim Mulva, Chairman and CEO of ConocoPhillips, together with Mr Kevin McCann AM, Chairman of Origin Energy, acting on behalf of Australia Pacific LNG, and Mr Su Shulin, President of Sinopec.
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.”
Mr Su indicated that he was pleased to have signed the Heads of Agreement with Mr Mulva and Mr McCann, thereby signalling intentions for long-term cooperation between Sinopec, ConocoPhillips and Origin Energy.
“This will help Sinopec diversify its natural gas supply and meet the rapidly increasing demand of customers in China,” he said.
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Source: APLNG, February 25, 2011;