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UPDATE 1-Papua New Guinea LNG project to supply Sinopec unit

Published 02/04/2019, 10:59 am
Updated 02/04/2019, 11:00 am
© Reuters.  UPDATE 1-Papua New Guinea LNG project to supply Sinopec unit
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April 2 (Reuters) - The ExxonMobil XOM.N operated Papua New Guinea LNG project has agreed a deal to supply liquified natural gas (LNG) to a unit of China Petroleum & Chemical Corp 600028.SS , Australia's Santos, a partner in the project, said on Tuesday.

The four-year deal is for the supply of about 0.45 million tonnes of LNG a year to Unipec Singapore, Santos STO.AX , which holds a 13.5 percent stake in the PNG LNG project, said in a statement.

The deal will take the $19 billion PNG LNG project's total contracted LNG volumes to about 7.9 million tonnes per annum (mtpa), it said.

"The supply and purchase agreement (SPA) with Unipec ... is the final mid-term LNG SPA that the project has been seeking to secure," said Peter Botten, managing director at Oil Search OSH.AX , which has a 29 percent interest in PNG LNG.

The project signed similar LNG supply deals with PetroChina Co Ltd 601857.SS and a unit of British oil giant BP BP.L last year.

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