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Australia Pacific LNG said Chinese state-controlled oil giant Sinopec has completed its acquisition of a 15% stake in the Australia Pacific LNG joint venture owned by Origin Energy and ConocoPhillips.

Starting in 2015， the completion of the deal means all the conditions precedent have now been met for the sale of 4.3 million mt/year of LNG from the project to Sinopec,. The sales contract runs for 20 years.

On July 28, Australia Pacific LNG sanctioned the first stage of development for its $20 billion coalseam gas-based LNG project on Curtis Island in the eastern Australian state of Queensland. Australia Pacific LNG's project will initially involve the $14 billion development of a first 4.5 million mt / year LNG production train and infrastructure to support the second train.

The company plans to sanction the second train once it finalizes discussions with potential customers. The second train is expected to start up in early 2016.

APLNG said Sinopec's investment provides a net reduction in the two founding partners' funding requirements of $750 million. Sinopec has paid $1.765 billion for its stake in Australia Pacific LNG, with the shares held by Origin and ConocoPhillips now diluted to 42.5% each.