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APLNG to supply Kansai Electric for 20 years

Oilfield Technology,

Australia Pacific LNG Pty Limited (Australia Pacific LNG) and The Kansai Electric Power Company have signed a Sale and Purchase Agreement for the supply of approximately 1 million tpy of LNG for 20 years.

Australia Pacific LNG will supply Kansai Electric with LNG from its LNG facility on Curtis Island, with deliveries anticipated to commence in 2016.

Australia Pacific LNG Chairman and Origin Energy Managing Director, Mr Grant King said, "This binding long-term supply agreement with Kansai Electric indicates the strength of demand for LNG from Asia and marks another significant milestone in the Australia Pacific LNG project's progress towards a two train development."

The agreement is conditional on Australia Pacific LNG making a final investment decision on the second phase of the project, which remains on track for mid-2012.

Australia Pacific LNG is an incorporated joint venture between Origin Energy, ConocoPhillips and Sinopec. The first LNG train of the project was sanctioned in July 2011 and is currently under construction, with first LNG production on target for 2015.

Edited from press release by Peter Farrell.

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