PNG LNG venture announced that it has entered into a mid-term LNG sale and purchase agreement (SPA) with BP Singapore (BP), for the supply of LNG commencing in August 2018.
The mid-term SPA is for supply of approximately 0.45 MMT/Y of LNG for the first three contract years rising to approximately 0.9 MMT/Y in the final two contract years.
This SPA takes the total contracted volumes from the project to 7.5 MMT/Y, with 7.0 MMT of PNG LNG's annual output already committed under long-term contracts to JERA, Osaka Gas, Sinopec and CPC and the recently announced mid-term sale to PetroChina, PNG LNG venture’s partner, Santos said in a statement today.
“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 MMT/Y.”
Last month, PetroChina International signed a three-year agreement for the purchase of 0.45 MMT/Y of LNG from PNG LNG plsnt, expected to begin in the coming days. “The first sale under the new agreement is expected to take place this week."
The PNG LNG project's nameplate output capacity is 6.9 MMT/Y.