NWS Signs LNG Sales Agreement

The North West Shelf LNG Sellers announced the signing of Sales and Purchase Agreements with Osaka Gas Co. Ltd for the purchase and supply of a total of one million tons per annum (mtpa) at plateau of LNG, starting 2004. The agreement follows the signing on January 16, 2001 Letters of Intent with the NWS LNG Sellers.

The agreement is the second Sales and Purchase Agreement signed for supply of LNG from the North West Shelf's expansion project, currently under way at the North West Shelf Venture's onshore gas plant on the Burrup Peninsula, Western Australia. The expansion includes a fourth LNG processing train with a production capacity of 4.2 mtpa, and a second trunkline that will link the Venture's offshore gas production and onshore gas processing facilities.

Woodside Managing Director John Akehurst said that the agreement reflected a strong sign of confidence in the operating performance and reliability offered by the North West Shelf. "The North West Shelf has established itself as a pre-eminent supplier of LNG to the Asia-Pacific region and we are very pleased to extend our business relationship with Osaka Gas." Osaka Gas is one of the North West Shelf LNG Project's existing customers, taking about 790,000 tons per annum of LNG under a 20-year agreement that commenced in 1989. The company is based in the Kansai region of western Japan and serves more than six million customers, providing comprehensive gas related services ranging from production and supply of gas to sales of gas equipment.

As previously advised on October 25, 2001, the North West Shelf LNG Sellers signed a Sales and Purchase agreement with Tokyo Gas and Toho Gas for the purchase and supply of 1.37 mtpa of LNG, staring in 2004.

Letters of Intent have also been announced with:

  • Tohoku Electric on February 5, 2001 for the supply of 0.4 mtpa of LNG, starting 2005
  • Kyushu Electric on March 28, 2001 for the supply of 0.5 mtpa of LNG, starting 2006

Key terms agreements have been announced with:

  • Chubu Electric on August 3, 2001 for the supply of 0.6 mtpa of LNG, starting 2009
  • Shell Gas & Power on May 15, 2001 for the supply of up to 3.7 million tons of LNG over five years. The agreement covers LNG supply between 2004 and 2009 and will be supplied from the build-up period of the fourth LNG train.

The six equal Participants in the North West Shelf Venture are: Woodside Energy Ltd. (operator); BHP Billiton Petroleum (North West Shelf) Pty Ltd; BP Developments Australia Pty Ltd; Chevron Australia Pty Ltd; Japan Australia LNG (MIMI) Pty Ltd; and Shell Development (Australia) Proprietary Limited.