Chinese state-controlled oil giant Sinopec has completed its acquisition of a 15% stake in the Australia Pacific LNG joint venture owned by Origin Energy and ConocoPhillips, APLNG said Tuesday.
The completion of the deal means all the conditions precedent have now been met for the sale of 4.3 million mt/year of LNG from the project to Sinopec, starting in 2015. The sales contract runs for 20 years.
APLNG sanctioned the first stage of development for its $20 billion coalseam gas-based LNG project on Curtis Island in the eastern Australian state of Queensland on July 28. APLNG's project will initially involve the $14 billion development of a first 4.5 million mt/year LNG production train and infrastructure to support the second train.
The company plans to sanction the second train once it finalizes discussions with potential customers. The second train is expected to start up in early 2016.
Sinopec has paid $1.765 billion for its stake in APLNG, with the shares held by Origin and ConocoPhillips now diluted to 42.5% each. Sinopec's investment provides a net reduction in the two founding partners' funding requirements of $750 million, APLNG said.
