PERTH (miningweekly.com) – The joint venture partners of the Papua New Guinea liquefied natural gas (PNG LNG) project have entered into a mid-term LNG sales and purchase agreement with BP Singapore.
Under the terms of the agreement, BP will be supplied with around 0.45-million tonnes of LNG a year over an initial three-year period. This will increase to 0.9-million tonnes a year over the subsequent two-year period.
First supply is expected in August this year.
“We are pleased to announce this LNG agreement with BP, which broadens the customer base for LNG from PNG LNG,” said Oil Search MD Peter Botten on Friday.
The agreement with BP will take the total contracted volumes from the PNG LNG project to 7.5-million tonnes a year, following the July announcement of a mid-term sales agreement with PetroChina, as well as the 6.6-million tonnes a year committed under long-term contracts with JERA, Osaka Gas, Sinopec and CPC.
ExxonMobil, on behalf of the PNG LNG project participants, is negotiating with a number of other parties for potential mid-term LNG supply agreements in lieu of spot sales.
These agreements are expected to be concluded in the near-term and increase sales under new mid-term agreements to 1.3-million tonnes a year.