International News

Papua New Guinea LNG project to supply Sinopec unit

FILE PHOTO: A sign for Santos Ltd, Australia’s No. 2 independent gas producer, is displayed on the front of the company’s office building in the rural township of Gunnedah, located in north-western New South Wales in Australia, March 9, 2018. REUTERS/David Gray

(Reuters) – The ExxonMobil operated Papua New Guinea LNG project has agreed on a deal to supply liquified natural gas (LNG) to a unit of China Petroleum & Chemical Corp, Australia’s Santos, a partner in the project, said on Tuesday.

The four-year deal is for the supply of about 0.45 million tonnes of LNG a year to Unipec Singapore, Santos, which holds a 13.5 percent stake in the PNG LNG project, said in a statement.

The deal will take the $19 billion PNG LNG project’s total contracted LNG volumes to about 7.9 million tonnes per annum (mtpa), it said.

“The supply and purchase agreement (SPA) with Unipec … is the final mid-term LNG SPA that the project has been seeking to secure,” said Peter Botten, managing director at Oil Search, which has a 29 percent interest in PNG LNG.

The project signed similar LNG supply deals with PetroChina Co Ltd and a unit of British oil giant BP last year.

(Reporting by Nikhil Subba in Bengaluru; editing by Richard Pullin)

Copyright 2018 Thomson Reuters. Click for Restrictions.

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