7 Dec 2009

China signs on as major client for PNG gas project

4:18 pm on 7 December 2009

China Petroleum & Chemical Corporation, or Sinopec, has signed a deal to buy 40 million tonnes of liquefied natural gas from the planned huge development in the Papua New Guinea Highlands.

The 17 billion US dollar LNG project will supply two million tonnes of gas to Sinopec's terminal in Shandong province in China each year for 20 years.

The deal comes as parties to the joint venture consider a final investment decision on the project, which is expected tomorrow.

ExxonMobil spokesman, Ron Billings, says his company is pleased that an important agreement with a key Asian customer has been completed.