Natural gas project decision near

More than 18 million tonnes per annum of LNG from Australian projects is now under contract to China. Photo / Thinkstock

The multibillion-dollar Australia-Pacific liquefied natural gas expansion project is nearing a decision to proceed.

This follows China's state-owned SinOpec signing up for more gas and a higher equity interest in the Queensland-based Origin Energy and ConocoPhillips-led project and the completion of marketing for a second "train" or processing plant.

"With the marketing of the second train now complete, the joint venture is on track to make a final investment decision on the second train in early 2012," Origin chairman Kevin McCann said.

Resources Minister Martin Ferguson said more than 18 million tonnes per annum (mtpa) of LNG from Australian projects was now under contract to China.

"The $14 billion APLNG project is part of the $45 billion being invested in Gladstone and regional areas of central and southern Queensland by the LNG industry," he said yesterday. "A second train at APLNG will add to this figure."

The joint venture brought SinOpec into the project, near Gladstone, in April last year with a 15 per cent equity stake.

On Saturday, SinOpec increased its stake to 25 per cent for US$1.1 billion ($1.36 billion). SinOpec also over the weekend inked a deal to buy another 3.3mtpa of LNG from the project through to 2035.

- AAP