Australia's Origin Energy said on Thursday its Australia Pacific Liquefied Natural Gas (APLNG) joint venture with U.S. energy giant ConocoPhillips has signed a binding agreement with China Petroleum & Chemical Corporation (Sinopec) for liquefied natural gas (LNG) supply and a 15 percent equity interest.
Under the agreement, the APLNG joint venture is to supply to Sinopec 4.3 million tons of LNG annually for 20 years from fields in south central Queensland.
The joint venture is to build a 450 km transmission pipeline from the gas fields to Curtis Island near Gladstone in Queensland, where an LNG processing facility will be built.
The deal formalizes the Chinese energy giant's 15 percent stake in the project.
The project equity sale leaves ConocoPhillips and Origin Energy with 42.5 percent interest each in APLNG, Origin said in a statement on Thursday.
Sinopec was welcomed as a joint venture partner with a signing ceremony in Brisbane on Thursday, according to Australian Associated Press.
Australian Minister for Resources and Energy, Martin Ferguson witnessed the signing in Brisbane on Thursday.
Ferguson said it was the biggest single LNG sales and purchase agreement by annual volume in Australian history.
"Deals like this one put Australia on track to be one of the world's largest suppliers of LNG in coming years," Ferguson said.
"The APLNG project has the potential to significantly expand the burgeoning coal seam gas to LNG industry on Australia's east coast and cement Gladstone's place as a key LNG hub."
Ferguson said China was Australia's second-largest LNG customer and the Sinopec deal brought new and existing LNG contracts with the Asian superpower to more than 15 million tonnes a year.
Media reports suggest the gas sales deal could be worth 90 billion AU dollars (96.81 billion U.S. dollars) over the next two decades.
Federal Environment Minister Tony Burke gave the project the green light on February 22.
Under the agreement, the APLNG joint venture is to supply to Sinopec 4.3 million tons of LNG annually for 20 years from fields in south central Queensland.
The joint venture is to build a 450 km transmission pipeline from the gas fields to Curtis Island near Gladstone in Queensland, where an LNG processing facility will be built.
The deal formalizes the Chinese energy giant's 15 percent stake in the project.
The project equity sale leaves ConocoPhillips and Origin Energy with 42.5 percent interest each in APLNG, Origin said in a statement on Thursday.
Sinopec was welcomed as a joint venture partner with a signing ceremony in Brisbane on Thursday, according to Australian Associated Press.
Australian Minister for Resources and Energy, Martin Ferguson witnessed the signing in Brisbane on Thursday.
Ferguson said it was the biggest single LNG sales and purchase agreement by annual volume in Australian history.
"Deals like this one put Australia on track to be one of the world's largest suppliers of LNG in coming years," Ferguson said.
"The APLNG project has the potential to significantly expand the burgeoning coal seam gas to LNG industry on Australia's east coast and cement Gladstone's place as a key LNG hub."
Ferguson said China was Australia's second-largest LNG customer and the Sinopec deal brought new and existing LNG contracts with the Asian superpower to more than 15 million tonnes a year.
Media reports suggest the gas sales deal could be worth 90 billion AU dollars (96.81 billion U.S. dollars) over the next two decades.
Federal Environment Minister Tony Burke gave the project the green light on February 22.
