PNG LNG Inks 5-Year Deal with BP Singapore

ExxonMobil’s Papua New Guinea (PNG) LNG export project signed a mid-term LNG sale and purchase agreement (SPA) with BP Singapore. The deal is for the supply of approximately 0.45 Mtpa of LNG for the first three contract years rising to approximately 0.9 Mtpa in the latter two contract years.

This deal takes the total contracted volumes from the project to 7.5 Mtpa, with 7.0 million tons of PNG LNG’s annual output already committed under long-term contracts to JERA, Osaka Gas, Sinopec and CPC and the recently announced mid-term sale to PetroChina.

ExxonMobil, on behalf of the PNG LNG project participants, is negotiating with a number of other parties for potential mid-term LNG supply agreements in lieu of spot sales. These agreements are expected to be concluded in the near-term and increase sales under new mid-term agreements to 1.3 Mtpa.