Australia Pacific LNG Pty Limited and The Kansai Electric Power Company has signed a binding Heads of Agreement for the sale and purchase of approximately 1 million tonnes of LNG per year for 20 years.
Australia Pacific LNG Chairman and Origin Energy Managing Director, Mr Grant King said, 'This binding heads of agreement is another significant milestone for the Australia Pacific LNG project, and we look forward to building a long-term, collaborative relationship with Kansai Electric.
'The signing of a long-term supply agreement demonstrates further momentum towards a two train development, with detailed negotiations continuing with sufficient customers to support a second train final investment decision,' Mr King said.
ConocoPhillips' Senior Vice President Exploration and Production, Mr Ryan Lance said, 'Kansai Electric is an experienced LNG buyer, and we look forward to supplying LNG to help support Japan's energy requirements.
This agreement signifies the strength of a relationship that has been built on mutual respect and trust amongst our companies.'
Under the terms of the agreement, Australia Pacific LNG will supply Kansai Electric with LNG from its LNG facility on Curtis Island, with deliveries anticipated to commence in mid-2016.
The agreement is conditional on Australia Pacific LNG making a final investment decision on the second train, which is targeted for early 2012.
The Australia Pacific LNG project was sanctioned in July 2011 for an initial 4.5 million tonnes per annum LNG production train and infrastructure to support a second train of the same size.