Australia Pacific LNG and Kansai Electric sign 20 year agreement for LNG supply
Australia Pacific LNG Pty Limited (Australia Pacific LNG) and The Kansai Electric Power Company (Kansai Electric) have signed a binding Heads of Agreement for the sale and purchase of approximately 1 million tonnes of LNG per year for 20 years.
Under the terms of the agreement, Australia Pacific LNG will supply Kansai Electric with LNG from its LNG facility on Curtis Island, with deliveries anticipated to commence in mid-2016.
The agreement is conditional on Australia Pacific LNG making a final investment decision on the second train, which is targeted for early 2012.
The Australia Pacific LNG project was sanctioned in July 2011 for an initial 4.5 million tonnes per annum LNG production train and infrastructure to support a second train of the same size. Australia Pacific LNG is an incorporated joint venture between Origin Energy, ConocoPhillips and Sinopec. It is currently under construction, with first LNG production on target for 2015.