Regional LNG: Sinopec and PNG LNG finalize LNG SPA

Unipec Asia Co., Ltd., a subsidiary of China Petroleum & Chemical Corporation (Sinopec) and Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation and operator of the Papua New Guinea LNG Project, on Thursday announced that Sinopec and the project participants have entered into a binding sales and purchase agreement for the long-term sale and purchase of LNG totalling approximately 2.0 million tonnes per annum.

Under the agreement, the PNG LNG Project will supply LNG to Sinopec?s LNG terminal in Shandong Province, for a period of 20 years. Phase I capacity of the terminal is 3 million tons per annum.

The PNG LNG Project is an integrated development which includes gas production and processing facilities, onshore pipelines and offshore pipelines and LNG plant facilities.

Participating interests are ExxonMobil (through various affiliates, including Esso Highlands Limited as Operator) 41.5%, Oil Search 34.0%, Santos 17.7%, Nippon Oil 5.4%, Mineral Resources Development Company 1.2 %, and Petromin PNG Holdings Limited 0.2%.(alex)