PNG LNG signs mid-term sales agreement with PetroChina

Oil Search and Santos announced today that the PNG LNG Project co-venturers have entered into a mid-term LNG SPA with PetroChina, for the supply of approximately 0.45 MTPA over a 3-year period, commencing in July 2018.

This SPA takes the total contracted volumes from the project to 7 MTPA, with 6.6 MTPA of PNG LNG’s annual output already committed under long-term contracts to 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 MTPA.