One of Origin Energy Limited’s (ASX:ORG) joint venture partners in the Australia Pacific liquefied natural gas (LNG) project, China Petrochemical Corporation (Sinopec), has increased its interest in the $20 billion venture.
Chinese owned oil company Sinopec will pay $US1.1 billion for an extra 10 per cent stake and LNG supply.
The deal will boost Sinopec’s stake to 25 per cent and reduce Origin’s and fellow JV partner ConocoPhillips’ stake down to 37.5 per cent each.
The initial agreement was announced at the end of 2011. Origin said today the binding agreement between Sinopec and Australian Pacific LNG has now been signed.
In the 2011 financial year Origin Energy reported a net profit of $248 million.
