PetroChina to help secure gas for Australia 3m t/yr LNG project

02 August 2012 11:44  [Source: ICIS news]

SINGAPORE (ICIS)--PetroChina will help secure gas supply for the proposed 3m tonne/year LNG project of Australia’s Liquefied Natural Gas Limited (LNG Ltd) in Queensland.

PetroChina International Investment (Australia), a subsidiary of state-owned energy giant PetroChina, and LNG Ltd have executed a non-binding a letter of intent (LOI) on the gas supply for the LNG project, the Australian firm said on Thursday.

PetroChina’s wholly-owned subsidiary China Huanqiu Contracting & Engineering Corp (HQC), which is the engineering, procurement and construction (EPC) contractor of the project, has a 19.9% stake in LNG Ltd and is the largest shareholder the Australian firm.

The LOI provides that LNG Ltd and PetroChina will work together to ensure sufficient gas supply for the LNG project. The non-binding agreement states that PetroChina Australia will on selective basis acquire prospective gas assets in Queensland, or enter into supply agreement with parties owning gas assets in the area, LNG Ltd said.

The deal follows an important acquisition of coal bed methane (CBM) assets in Queensland by PetroChina. 

Australia’s Molopo Energy announced on 1 August that it had sold its Queensland Bowen Basin CBM assets to a wholly-owned subsidiary of PetroChina Australia at A$41m ($43m).

PetroChina would deliver the Molopo gas to the LNG project. Molopo’s permit areas can produce and deliver up to 65 terajoules/day of gas, representing 50% of the minimum volumes required to operate the LNG project, LNG Ltd said.

 ($1 = A$0.95)

By: Fanny Zhang
+65 6780 4359

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