Australia Pacific LNG Pty Limited and The Kansai Electric Power Company today signed a Sale and Purchase Agreement for the supply of approximately 1 million tonnes of LNG per year for 20 years.
Today’s Sale and Purchase Agreement follows the signing of a Heads of Agreement between Australia Pacific LNG and Kansai Electric on 17 November 2011 and is consistent with the commercial terms of that agreement.
Under the terms of the agreement, Australia Pacific LNG will supply Kansai Electric with LNG from its LNG facility on Curtis Island, with deliveries anticipated to commence in 2016.
Australia Pacific LNG Chairman and Origin Energy Managing Director, Mr Grant King said, “This binding long-term supply agreement with Kansai Electric indicates the strength of demand for LNG from Asia and marks another significant milestone in the Australia Pacific LNG project’s progress towards a two train development.”
The agreement is conditional on Australia Pacific LNG making a final investment decision on the second phase of the project, which remains on track for mid-2012.
ConocoPhillips’ Executive Vice President, Exploration and Production, Mr Matthew Fox said, “We look forward to having a long-term relationship with Kansai Electric, an experienced LNG buyer in the mature Japanese market.”
Australia Pacific LNG is an incorporated joint venture between Origin Energy, ConocoPhillips and Sinopec. The first LNG train of the project was sanctioned in July 2011 and is currently under construction, with first LNG production on target for 2015.
LNG World News Staff, July 03, 2012; Image: APLNG