Sinopec to buy gas from PNG LNG project
The PNG LNG Project, which includes Santos Limited (STO) and Oil Search Limited (OSH), have finalised a binding agreement with Sinopec subsidiary Unipec Asia Co for the long-term sale and purchase of liquefied natural gas totaling approximately two million tonnes per annum. In a statement released this morning it said under the agreement, the PNG LNG Project would supply LNG to Sinopec for a period of 20 years.
Vice president, LNG, ExxonMobil Gas & Power Marketing Company, Ron Billings, said the LNG the group has committed would 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,” Mr Billings said.
“With the developments of the market, we will expand the facilities to receive 5-6 million tons per year in a Phase II stage.”
Santos and Oil Search hold 17.7% and 34% interests in the project respectively.
At the close of trade yesterday, Oil Search shares were trading at $6.00, while Santos shares were trading at $15.15.
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