Source: Australia Pacific LNG
China Petrochemical Corporation Sinopec (NYSE: SNP) (LSE: SNP) has completed a subscription agreement with Origin Energy and US super-major ConocoPhillips (NYSE:COP) to acquire a 15 percent stake in Australia Pacific LNG (APLNG) for US $1.765 billion.
As a consequence, ConocoPhillips' and Origin Energy's ownership interest in Australia Pacific LNG has been diluted to 42.5% each. This investment by Sinopec provides a net reduction in funding requirements of US$750 million to each of Origin and ConocoPhillips (being 42.5% of US$1.765 billion).
In addition, all conditions precedent have now been met for the sale of 4.3 million tonnes of LNG per annum by Australia Pacific LNG to Sinopec, commencing in 2015.
"We officially welcome Sinopec to Australia Pacific LNG as a shareholder and foundation customer,” said Grant King, Origin managing director and chairman of APLNG. “We look forward to working alongside ConocoPhillips and Sinopec to deliver the Australia Pacific LNG project, drawing on the extensive experience and capabilities within the joint venture in CSG production, development and operation of LNG facilities."
APLNG is a coal seam gas (CSG) to liquefied natural gas development project in Queensland, Australia. The project includes the upstream development of CSG fields in the Surat and Bowen Basins, construction of a 450-kilometer-long gas transmission pipeline and development of a 18 Mtpa LNG plant.
