PNG LNG sales deal with CPC finalised
Oil Search Limited (OSH) announced the finalisation of a Sale and Purchase Agreement with CPC Corporation of Taiwan for a long-term supply of approximately 1.2 million tonnes per annum of Liquefied Natural Gas (“LNG”) from the PNG LNG Project. Operator of the project, Exxon Mobil, said under the agreement, the PNG LNG Project would supply LNG to CPC for a period of 20 years.
Oil Search’s managing director, Peter Botten, said the project is now fully contracted for the full plant capacity, and the way is clear to move forward to financial close.
Vice president, LNG, ExxonMobil Gas and Power Marketing, Ron Billings, said the agreement would deliver a reliable supply of cleaner-burning natural gas to meet Taiwan’s growing energy demand.
”With this SPA, all of the project’s production capacity has been committed on a long-term basis,” Mr Billings said.
”We are now looking forward to the finalisation of the financing arrangements with lenders which is expected in the first quarter of 2010.”
Oil Search has a 29% participating interest in the project, while Santos Limited (STO) has a 13.5% interest.
As at 1452 AEDT, Oil Search shares were up 8c to $5.32, while Santos shares were up 27c to $13.37.
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