APLNG closer to second train
AUSTRALIA Pacific LNG now appears certain to add a second train to its Curtis Island project.
No final investment decision has been made on the second train, and APLNG is taking nothing for granted, but a new agreement with Chinese energy firm Sinopec should pave the way for a second train.
Sinopec and APLNG signed a non-binding Heads of Agreement (HOA), which provides a framework for moving towards a final binding sale. That binding sale is expected to happen in early 2012.
A spokesperson for APLNG said there are still a number of steps before FID is reached on the second LNG train.
"Execution of binding agreements with The Kansai Electric Company (Kansai Electric) and this non-binding agreement with Sinopec are certainly key steps," she said. "The project is now well on its way to take a FID on the second LNG train in early 2012."
"Upon conversion of the HOA into binding agreements, Sinopec will purchase 7.6 million tonnes per annum (mtpa) of LNG in total from the project, with Kansai Electric purchasing approximately 1 mtpa of LNG. These additional transactions with Sinopec complete the marketing of the second LNG train. "
Sinopec Group had already signed a deal for annual purchase of 4.3 million tonnes of LNG over 20 years. The new HOA, a nnounced two weeks ago, is for an additional 3.3 million tonnes per year, taking the total to 7.6 million.