PNG to supply 2M ton LNG to Sinopec
Santos announced that the PNG LNG project participants have finalized a binding sale and purchase agreement with Unipec Asia Co Ltd, a subsidiary of China Petroleum and Chemical Corporation (Sinopec), for the long-term sale and purchase of LNG totaling approximately 2 million tons per annum.
Under the agreement, the Papua New Guinea LNG project will supply LNG to Sinopec for a period of 20 years. Details about pricing are not disclosed.
The PNG LNG project is an integrated development which includes gas production and processing facilities, onshore pipelines and offshore pipelines, plus LNG plant facilities. Participating interests are ExxonMobil (41.5%, operator), Oil Search 34%, Santos 17.7%, Nippon Oil 5.4%, Mineral Resources Development Company 1.2%, and Petromin PNG Holdings Limited 0.2%.
The PNG LNG will supply an LNG terminal that Sinopec is going to build in Qingdao, Shandong Province. Phase I capacity of the terminal is 3 million tons per annum. With the developments of the market, Sinopec plans to expand the facilities to receive 5-6 million tons per year in a phase II stage.