The China Petrochemical Corp., also known as the Sinopec Group, said Friday that it has completed a deal with Australia Pacific LNG Pty. Ltd. (APLNG) that will increase Sinopec's stake in the company by 10 percent.
The Chinese oil giant now holds a 25-percent stake in the Australia-based joint venture, while stakes held by ConocoPhilips and Origin will both drop to 37.5 percent from their previous 42.5 percent.
According to an agreement inked in December 2011, the Sinopec Group will acquire 1.23 trillion cubic feet in APLNG's proved plus probable (2P) reserves and 1.54 trillion cubic feet in proven, probable and possible (3P) reserves.
The oil giant has also promised to buy 7.6 million tonnes of liquefied natural gas annually for 20 years starting in 2016 from APLNG's gas reserves in Queensland.
The Sinopec Group said the move will help the company diversify its natural gas supply channels so as to meet China's rising market demand.
APLNG is a three-way joint venture and currently meets 40 percent of Queensland's demand for natural gas.
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