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Friday, February 25, 2011

Sinopec, Australia Pacific in 20-yr LNG deal

China's Sinopec clinched the second-largest single Chinese liquefied natural gas deal, and ventured for the first time into a foreign unconventional gas asset to feed a domestic boom for the clean fuel. Sinopec Group, parent of Sinopec Corp , signed a preliminary deal for 20 years of LNG supplies with Australia Pacific LNG Pty Ltd (APLNG), and will acquire a 15 percent stake in the giant coal seam project owned by U.S. energy firm ConocoPhillips and Australia's Origin Energy . Sinopec agreed to buy 4.3 million tonnes of LNG per year starting 2015 from the project in the eastern Queensland state, companies said, a significant step to clear the way for a final investment decision for the $35 billion project.