A decision is expected in May from ConocoPhillips and Origin Energy Ltd. on whether or not to proceed with a proposed US$ 18 billion liquefied natural gas venture in Queensland.
The project is gaining momentum, however, with the announcement that Sinopec, China’s second biggest oil firm, is set to acquire a prospective 15% stake. Under the preliminary agreement, Sinopec will buy up to 4.3 million t of LNG a year over two decades. Although no figures have been disclosed, estimates suggest the deal could be worth approximately US$ 71 billion.
The proposed agreement would constitute one of four coal seam gas to LNG ventures in Queensland as companies scramble to meet Asian demand. BG Group Plc. has committed to a US$ 15 billion project; Santos has approved a US$ 16 billion development, while Arrow Energy plans the fourth venture on the Queensland coast.