Co-venturers in the PNG LNG Project have entered into a mid-term LNG sale and purchase agreement (SPA) with a Hong Kong based firm for the supply of LNG commencing in July 2018.
In a statement on July 20th, Oil Search Limited Managing Director, Peter Botten, said the mid-term LNG SPA with PetroChina International (Hong Kong) Corporation Limited (PCI) is for a supply of approximately 0.45 million tons of per annum (MTPA) of LNG over a three-year period.
This SPA takes the total contracted volumes from the Project to 7.0 MTPA, with 6.6 MT of PNG LNG's annual output already committed under long-term contracts to JERA, Osaka Gas, Sinopec and CPC.
Peter Botten said: “We are delighted to have entered into a SPA with PetroChina, which has been an active buyer of spot LNG cargoes from PNG LNG. The first sale under the new agreement is expected to take place this week.
“This is the first mid-term sale to be finalised for the supply of up to 1.3 million tons per annum (in aggregate) from PNG LNG for a period of up to five years. ExxonMobil, on behalf of the PNG LNG Project participants, is in negotiations with a number of other parties for potential LNG supply agreements, which are expected to be finalised in the near term.”
Oil Search has a 29 percent interest in the PNG LNG Project.