CESM’s LNG vessels will initially load LNG from the APLNG project in Gladstone, Queensland, Australia and will discharge the LNG into any one of five (5) LNG terminals being built in China by Sinopec.
To deliver strategic, clean energy into China, Sinopec has entered into several agreements that involves the whole LNG supply chain. It has a 25% stake in APLNG, a 39% stake in CESM and its LNG vessels and a 100% ownership and operator-ship of its new receiving terminals. Sinopec needed to be involved in shipping to ensure it could purchase its LNG on a ‘free-on-board’ (FOB) basis, (purchasing the LNG in Australia and controlling the ships and the schedules to its five (5) destination ports).
Sinopec has a 20-year term, LNG sales and purchase agreement with APLNG to import 7.6 Mtpa (seven point six megatonnes per annum) of LNG into China.
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