Santos on Tuesday announced that the PNG LNG Project participants have finalized a binding Sale and Purchase Agreement (SPA) with CPC Corp. of Taiwan for the long-term sale and purchase of liquefied natural gas (LNG) totaling approximately 1.2 million tonnes per annum.
Under the agreement, the PNG LNG Project will supply LNG to CPC Corp. for a period of 20 years.
With the finalization of this SPA, all of the PNG LNG Project's production capacity has been committed on a long-term basis. Finalization of the financing arrangements with lenders is expected later this month.
The PNG LNG Project is an integrated development that includes gas production and processing facilities, onshore and offshore pipelines and LNG plant facilities with a capacity of 6.6 million tonnes per annum. Santos has a 13.5% interest in PNG LNG. Other participants are entities of ExxonMobil (33.2% and operator), Oil Search (29%), Independent Public Business Corporation (PNG Government, 16.6%), Nippon Oil Exploration (4.7%), Mineral Resources Development Company (PNG landowners, 2.8%) and Petromin PNG Holdings Limited (0.2%).