(Source: Datamonitor)
Esso Highlands, a subsidiary of ExxonMobil and operator of the PNG LNG project, has entered into a heads of agreement with Unipec Asia, a subsidiary of China Petroleum & Chemical Corporation, or Sinopec, for the long-term supply of two million tonnes per annum of liquefied natural gas.
The company has said that the PNG LNG project participants are working with Sinopec to finalize a binding sale and purchase agreement. A final investment decision on the project is planned for later in 2009.
The PNG LNG project is an integrated development which includes gas production and processing facilities, onshore and offshore pipelines and liquefied natural gas (LNG) plant facilities.
Participants are ExxonMobil (Esso Highlands as operator) with 41.5% interest, Oil Search with 34% interest, Santos with 17.7% interest, Nippon Oil with 5.4% interest, Minerals Resources Development Company with 1.2% interest, and Eda Oil with 0.2% stake.
Wang Zhigang, senior vice president of Sinopec, said: "We are pleased to have signed this significant heads of agreement with the PNG LNG project, which is led by our partner ExxonMobil. This LNG resource will be supplied to a LNG receiving terminal that Sinopec will build in China. We hope that the working teams from both parties continue to work closely together to finalize the sale and purchase agreement as soon as possible."
A service of YellowBrix, Inc.
