PNG LNG signs mid-term sales agreement with Singapore’s Unipec

PNG’S leading petroleum company Oil Search Ltd reports that the PNG LNG Project co-venturers have entered into a mid-term LNG sale and purchase agreement (SPA) with Unipec Singapore Pte Ltd.

The deal is for the supply of approximately 0.45 million tonnes per annum (MTPA) of LNG over a four-year period commencing in April 2019, taking the total contracted volumes from the Project to approximately 7.9 MTPA.

“The SPA with Unipec, which is a wholly-owned subsidiary of Sinopec, one of PNG LNG’s original long-term customers, is the final mid-term LNG SPA that the Project has been seeking to secure, following the signing of SPAs last year with PetroChina and BP, totalling 0.9 MTPA over 2018 to 2023,” Oil Search’s managing director Peter Botten said.

“These SPAs add to the 6.6 MTPA committed under long-term contracts to JERA, Osaka Gas, Sinopec and CPC and take total contracted volumes from the Project to approximately 7.9 MTPA. Oil Search believes that the PNG LNG Project now has an appropriate mix of long-term contracts, mid-term contracts and sales on the spot market.”