PNG LNG to Supply to Sinopec Subsidiary

The ExxonMobil-operated PNG LNG project, located in Papua New Guinea, will supply LNG to unit of Chinese state-owned Sinopec, Santos, a partner in the project said April 2.

According to Santos, the PNG LNG co-venturers have entered into a mid-term LNG sale and purchase agreement (SPA) with Unipec Singapore, a wholly-owned subsidiary of Sinopec, for the supply of LNG starting in April 2019.

The mid-term SPA with Unipec is for supply of approximately 0.45mn metric tons/year of LNG over four years.

This SPA takes the total contracted volumes from the project to 7.9mn mt/yr, with 6.6mn mt/yr committed under long-term contracts to Jera, Osaka Gas, Sinopec and CPC, and 1.3mn mt/yr under mid-term SPAs with PetroChina, BP and Unipec, Santos, which has a 13% stake in the project, said.