PNG LNG inks 5-year supply deal with BP

Papua New Guinea’s first LNG export project, operated by the US energy giant ExxonMobil and its co-venturers, has signed a mid-term LNG sale and purchase deal with BP Singapore. 

The mid-term deal is for the supply of approximately 0.45 million tonnes of liquefied natural gas per annum (mtpa) for the first three contract years rising to approximately 0.9 mtpa in the final two contract years.

Santos, that has a 13.5 percent interest in the project, noted in its statement that the supply under the deal starts this month.

This deal takes the total contracted volumes from the project to 7.5 mtpa, with 7.0 million tonnes of PNG LNG’s annual output already committed under long-term contracts to JERA, Osaka Gas, Sinopec and CPC and the recently announced mid-term sale to PetroChina.

ExxonMobil, on behalf of the PNG LNG project participants, is negotiating with a number of other parties for potential mid-term LNG supply agreements in lieu of spot sales.

These agreements are expected to be concluded in the near-term and increase sales under new mid-term agreements to 1.3 mtpa, the statement said.