The agreement extends to the end of 2022 or until the 700 petajoules of gas is consumed, whichever comes first. The agreement replaces the NWS Venture's existing contract with Western Power, which was signed in 1994 with the then State Energy Commission of Western Australia.
In the short term, daily volume requirements by Western Power are not expected to be materially different to current arrangements. Initial daily quantities are expected to be about 100 – 110 terajoules of gas a day.
However, the new contract provides Western Power with additional gas supply should it proceed with the Cockburn 2 power station.
General Manager North West Shelf Gas, John Richards said the North West Shelf Venture was delighted to be extending its business relationship with Western Power.
"The North West Shelf Venture has had a long-standing and rewarding relationship with Western Power since the first days of gas supply to the State's south west in the 1980s," Mr. Richards said.
"We are now extending this relationship, providing Western Australians with a long-term and reliable gas supply."
Mr. Richards said that the North West Shelf Venture was well positioned for future growth in the domestic gas market and continued to offer competitive energy options for existing and potential gas customers.
"This year we are celebrating 20 years of gas supply to Western Australia," he said. "This is a major milestone for the Venture and the State and we look forward to building on this significant achievement."
North West Shelf Gas Pty Ltd is the Australian domestic gas marketing representative for the North West Shelf Venture.
Interests in the gas sale and purchase agreement were owned by the operator, Woodside Energy Ltd. (50.0%); BP Developments Australia Pty Ltd (16.67%); ChevronTexaco Australia Pty Ltd (16.67%); BHP Billiton Petroleum (North West Shelf) Pty Ltd (8.33%); and Shell Development (Australia) Proprietary Limited (8.33%).
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