China Petrochemical Corp, which is also known as Sinopec Group and is the largest oil refiner in Asia, said today that it has signed a preliminary agreement to purchase 4.3 million metric tons of liquefied natural gas per year from Australia Pacific LNG Pty Ltd.
In addition, the Chinese oil giant will buy a 15% stake in Australia Pacific LNG, a 50:50 joint venture between U.S. energy firm ConocoPhillips CO and Australia's Origin Energy.
Upon the completion of deal, the two original shareholders of Australia Pacific LNG will see their stakes in the JV fall to 42.5% each.
However, Sinopec did not reveal any financial terms on the deal.
Australia Pacific LNG, with most coal-bed gas reserves in Australia, supply about 40% of its coal-bed gas to local residents.
