28 Apr 2011

Clayton Utz congratulates Australia Pacific LNG on milestone Sinopec deal

Sydney, 28 April 2011: Clayton Utz has congratulated Australia Pacific LNG (APLNG) on the signing of its major liquefied natural gas (LNG) supply contract with China's Sinopec Group, a significant milestone for the APLNG joint venture for which Clayton Utz is a key legal adviser.

Last Thursday 21 April, representatives of APLNG and Sinopec Corporation, witnessed by Federal Minister for Resources, Energy and Tourism Martin Ferguson and Queensland Finance Minister Rachel Nolan, signed a contract for APLNG to supply up to 4.3 million tonnes each year of LNG to the Sinopec Group, for 20 years. LNG exports from the APLNG project are expected to commence in 2015.

The Sinopec Group has also agreed to acquire a 15 per cent interest in APLNG for a net consideration of US$1.5 billion.

A Clayton Utz team led by Energy and Resources partner Graham Taylor, and including Energy and Resources partner Andrew Smith and senior associate Samy Mansour, advised APLNG on the issue of equity to Sinopec.

APLNG is a joint venture between leading Australasian integrated energy company Origin Energy and major global energy company ConocoPhillips to deliver coal seam gas to an LNG plant at Laird Point on Curtis Island near Gladstone, Queensland. The proposal includes the development of coal seam gas fields in central Queensland and the construction of a 450 kilometre pipeline connecting the fields to Curtis Island.

Commenting on the deal, Graham Taylor said: "We are pleased to have worked alongside APLNG in achieving what is a very significant milestone for the project, which will be a significant contributor to the Queensland economy."

Clayton Utz was appointed project counsel to the APLNG project in 2008, with Energy and Resources partners Graham Taylor and Andrew Smith as the firm's key partners.

Related Knowledge

Get in Touch

Get in touch information is loading

Disclaimer

Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.