PORT MORESBY, Papua New Guinea, Dec. 3 (UPI) -- China Petroleum & Chemical Corp. entered into a 20-year agreement for supplies of liquefied natural gas from a project in Papua New Guinea.
Unipec Asia Co. Ltd., a subsidiary of China Petroleum & Chemical Corp., or Sinopec, and Esso Highlands Ltd., a subsidiary of Exxon Mobil, the major stakeholder and operator of the Papua New Guinea liquefied natural gas project, announced the deal.
The deal supplies LNG from a terminal planned for Qingdao in Shandong province. The initial phase envisions a capacity of 3 million tons of LNG per year. Expansions from a second phase of the project will push that capacity to more than 5 million tons per year.
"This LNG terminal will provide long-term and reliable clean natural gas resources to the Shandong market and will play a positive role in meeting the local demand, optimizing the energy mix and improving the local environment," said Wang Zhigang, senior vice president of Sinopec.
The Papua New Guinea project is integrated into processing and production facilities, including a network of transit pipelines. Exxon Mobil leads a consortium that includes Oil Search Ltd. of Papua New Guinea and Australia's Santos.
