Sinopec signs deal for higher stake in Australia Pacific LNG

China’s Sinopec has signed an agreement to add an additional 10% equity interest to its holdings in the Australia Pacific LNG Pty. Ltd. (APLNG) venture for a net consideration of $1.1 billion. Sinopec’s partners in APLNG are Origin Energy Ltd. and ConocoPhillips.

Also as part of the deal, Sinopec will increase its offtake of LNG from the APLNG development to 7.6 million tonnes/year of LNG through 2035. This firms up the proposed second LNG train for the project on Curtis Island, Gladstone, Queensland. The new deal builds on a previous 20-year arrangement with Sinopec for the sale of 4.3 million tpy of LNG starting in 2015.

After closing on this latest deal, Sinopec’s ownership interest in APLNG will rise to 25% from 15%. ConocoPhillips’s and Origin Energy’s equity interests, meanwhile, will be reduced to 37.5% each.