Sinopec signs huge LNG deal with Australia

China Petroleum and Chemical (Sinopec; SNP.NYSE, SNP.LSE, 600028.SH, 0386.HK) has agreed to a deal to purchase liquefied natural gas from Australia-Pacific LNG for 20 years, the South China Morning Post reported. Sinopec will purchase 4.3 million tons of LNG each year from the Australian firm beginning in 2015. The contract could prove to be worth around US$91 billion. Sinopec’s parent, China Petrochemical, also agreed to purchase a further 15% stake in Australia-Pacific LNG for US$1.5 billion. The deal is China’s second-largest LNG import contract to date. Australia-Pacific is preparing for a 30-year project to extract natural gas from a site in Queensland, where it will be sent to the coast, chilled into liquid form, then shipped to international markets.