Sinopec Ups Stake, Committment to APLNG Project

Sinopec has agreed to buy an additional 3.3 million tons of LNG through 2035 from the Australia Pacific LNG project.

This contract is in addition to the existing 4.3 million tons a year of LNG that it has already agreed to buy from the proposed project. The sale agreement would complete the marketing for the second train.

Sinopec has also agreed to increase its stake in the APLNG project from 15 percent to 25 percent. This move will reduce Conoco and Origin's ownership to 37.5% each. Sinopec paid US$1.5 billion for its initial 15% stake but a price on the next 10% would only be disclosed after the LNG sales agreement is finalised.

Australia is attempting to increase its share of global liquefied natural gas market and reports suggest the country is likley to overtake Qatar as the world's top supplier of LNG early in the second half of this decade as new projects are developed.