PERTH (miningweekly.com) – The Papua New Guinea liquefied natural gas (PNG LNG) project partners have entered into a mid-term LNG sale and purchase agreement with Hong Kong-based PetroChina International Corporation.
Under the agreement, the PNG LNG project will supply some 0.45-million tonnes of LNG a year over a three-year period, starting in July this year.
The PetroChina offtake agreement took total contracted volumes from the project to 7-million tonnes a year, with 6.6-million tonnes of PNG LNG’s yearly output already committed under long-term contracts to JERA, Oska Gas, Sinopec and CPC.
Santos said on Friday that operator ExxonMobil, on behalf of the project participants, was now 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 completed in the near-term and will increase sales under the new mid-term agreements to 1.3-million tonnes a year.