. Energy News .

China increases stake in Australia LNG
by Staff Writers
Brisbane, Australia (UPI) Jan 25, 2012

Chinese oil giant Sinopec has finalized a $1.1 billion deal to increase supply and raise its equity in the Australia-Pacific LNG project in Queensland.

The binding agreement seals an agreement announced last month between APLNG and state-owned Sinopec for the $20 billion project, led by Houston company ConocoPhillips and Australia's Origin Energy and builds on an April 2011 agreement.

Under the deal announced Monday, Sinopec will increase its equity stake in the project from 10 percent to 25 percent, with Origin and ConocoPhillips now each having a 37.5 percent interest.

"The extension of the existing LNG sales agreement between Australia Pacific LNG and Sinopec represents the largest LNG supply agreement in Australian history and is testament to the scale and quality of the project," Origin Energy Chairman Kevin McCann said in a statement.

The agreement, Origin said, increases Sinopec's purchase commitment of LNG from APLNG to a total of 7.6 million tons a year, up from 4.3 million tons a year.

Australia's Minister for Resources and Energy Martin Ferguson said the deal further cements Australian position as a major supplier of energy to the Asia Pacific Region.

"Today's agreement with Sinopec will see Australia continue to be a pre-eminent supplier of safe, secure and low-emission energy to China with more than 18 million tons of LNG per annum now under contract to China from Australia," Ferguson said in a statement Monday.

APLNG is part of a total of $45 billion being invested by the LNG industry in Queensland, Ferguson said, playing a crucial role in insulating Australia from continuing global economic uncertainty as well as helping the region to recover from the economic effects of last year's cyclone and floods.

The minister said the project is expected to create thousands of jobs in regional Queensland and represents "billions of dollars in export income for the wider Australian economy."

"This deal further emphasizes Australia's link into the Asia Pacific Region and in particular with China," he said. "This relationship has continued to build since Australia first started to export LNG from the North West Shelf Venture Project to China in May 2006."

The first train of the APLNG project is planned to come on stream in 2015. The signing of agreement, Origin says, finalizes the marketing of the second train, expected to start production in 2016.

The agreement is subject to approvals by the Chinese government and Australia's Foreign Investment Review Board.

Related Links
Powering The World in the 21st Century at Energy-Daily.com

Get Our Free Newsletters Via Email
Buy Advertising Editorial Enquiries


. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Falklands oil quest draws U.S. investor
Stanley, Falkland Islands (UPI) Jan 24, 2012
The Falkland Islands' search for oil in challenging offshore conditions in the South Atlantic is drawing interest from U.S. investors, giving the islanders hope a potential deal could offer some insurance against Argentine claims on the British overseas territory. Reports of talks on a possible takeover or majority acquisition in Rockhopper Exploration Plc by Anadarko Petroleum Corp., o ... read more

Mexican electricity output tied to growth

Backer: EU energy proposal has safeguards

India fails to meet electricity targets

GE Energy Launches New Power Conversion Business

Falklands oil quest draws U.S. investor

BP must pay part of rig owner's eventual Gulf costs

Dominion and Lockheed Martin Announce Grid Side Energy Efficiency Solution

White roofs to make for cooler Melbourne buildings

Natural Power appointed as Owner's Engineer on 20.5MW Sixpenny Wood wind farm

China voices 'deep concern' over US wind tower probe

Power generation is blowing in the wind

Spain's Gamesa wins Chinese wind turbine contract

Wind and Solar Farms Tackle the Vicissitudes of Weather

Spain cuts subsidies for clean energy

Pythagoras Solar Turns Organic Valley HQ into Energy Generating Asset

Soltecture Connects with altPOWER

Sandia chemists find new material to remove radioactive gas from spent nuclear fuel

Mexico activists slam planned mine near nuclear plant

Areva order book increases despite Fukushima disaster

UN nuclear agency to set up Fukushima office: report

Obey optimises bioenergy yield

Findings prove Miscanthus x giganteus has great potential as an alternative energy source

Bio architecture lab technology converts seaweed to renewable fuels and chemicals

US Woody Biomass Prices Have Dropped the Past Three Years

China's satellite navigation sector annual output predicted to reach 35 bln USD in 2015

China plans to launch 21 rockets, 30 satellites this year

Shenzhou 9 Behind the Curtain

China Plans to Launch 30 Satellites in 2012

Ecologists gain insight into the likely consequences of global warming

Hunger, drought affect Mexico's Tarahumara natives

Climate change invites alien invaders - Is Canada ready?

Drought worsening in Argentina, Paraguay


The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement