ConocoPhillips First LNG Cargo Sets Sail Successfully
ConocoPhillips and its partners made an announcement on Monday of the departure of first natural gas cargo from Australia Pacific LNG.
ConocoPhillips and its partners involved in the project finally made the announcement on Monday of departing their first LNG cargo shipment from Australia Pacific LNG situated in Curtis Island in Queensland.
ConocoPhillips shipment consisted of 935-foot tanker for the customer in Asia. This cargo is one of the first ones of liquid natural gas projects, which has taken place even when the oil prices are extremely damaging and excruciatingly low for the fossil fuel industry internationally. This step is crucial for the giant oil company’s project in order to generate profit when the oil market is damaging it.
This shipment is worth an investment of $17 billion, where the oil company has a share of 37.5%. This is the same stake Australia’s Origin Energy holds in the project. Sinopec has 25% stake in the project and is the major customer. A Japanese utility, Kansai Electric Power has recently signed some contracts for shipments too. APLNG ships fuel to Asia through taking coal seam gas from Eastern Australia and later liquefying it in order for the shipments to take place efficiently. A second shipment will take place in the second half of this year.
The oil and gas company Eastern Australia’s president, Warwick King, said, “Since the establishment of ConocoPhillips Australia East, our focus has been to establish a world-class operations team to safely start up and operate two LNG production units for decades to come. We would like to acknowledge the combined efforts of our APLNG joint-venture partners, Origin and Sinopec, for their ongoing support in reaching this major milestone.”
The construction of the APLNG initially began in 2011 with two production facilities. Each of these has the capability of producing 4.5 million tons per annum of liquid natural gas. The second production unit will be complete soon. It is expected to be self-funding after the second unit is operational, helping the organization business even more, especially at a time when natural gas prices are excruciatingly low. The CEO of the oil giant believes this is a milestone for the business and he showed his happiness for the company’s first cargo to take place successfully and safely.
Royalty payments of $1.2 billion are expected in the next year for Queensland expenditures on services, such as schools, according to the head of Australian oil industry, Malcolm Roberts. This shipment will help ConocoPhillips to cover the loss it’s facing due to the low prices of its products internationally.