Japanese electric utility reaches deal for Australia LNG
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Send by email(Australian Associated Press; June 29) -- Origin Energy's Australia Pacific LNG joint venture has finalized a 20-year supply contract with a Japanese power company. Australia Pacific LNG will supply about 50 billion cubic feet of natural gas a year to Kansai Electric Power Co. under an agreement reached June 29, Origin said. Kansai Electric recently signed deals to buy LNG from two other Australia export projects under construction.
APLNG consists of coal-seam gas fields in Queensland's Surat and Bowen basins, and a pipeline to an LNG plant on Curtis Island off the coast of Gladstone. First production of gas is expected in 2015, and the Kansai supply agreement would start in 2016. APLNG is one of four coal-seam gas projects proposed for the Gladstone state.
The $20 billion project is owned by Origin, ConocoPhillips and China Petrochemical Corp. (Sinopec), which will take most of the plant's output of an average 1.2 billion cubic feet per day.
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