NWS Venture renews Japanese LNG deal

THE North West Shelf Venture will supply between 1.2 and 1.4 million tonnes of liquefied natural gas per year to Japan’s Chugoku Electric Power Co. under a new 12-year contract, starting in 2009, the project’s partners announced this morning.
NWS Venture renews Japanese LNG deal NWS Venture renews Japanese LNG deal NWS Venture renews Japanese LNG deal NWS Venture renews Japanese LNG deal NWS Venture renews Japanese LNG deal

Chugoku Electric is the first of the project’s original Japanese customers to renew its long-term LNG supply requirements with the NWS Venture.

The original 1985 sales and purchase agreement for the supply of 1.11Mt of LNG each year to Chugoku expires in April 2009.

Chugoku is the primary energy supplier in Japan’s western Honshu province and has more than 5.2 million customers. It has an LNG terminal at Yanai, west of Hiroshima, and is scheduled to start operating its second LNG receiving terminal at Mizushima, Okayama Prefecture, next month.

NWS Australia LNG president Peter Cleary said the venture was focused on maintaining and extending its contracts with long-term Japanese customers, as well as successfully marketing available LNG volumes to other North Asian customers.

“The NWS Venture has received significant and firm interest from existing and potential North Asian customers for future LNG supply,” he said.

“We remain confident that available LNG volumes from the NWS Venture will be successfully marketed as regional and global LNG markets continue to expand.”

Woodside’s North West Shelf Ventures director Dr Jack Hamilton said the Venture was delighted to extend its long-term relationship with Chugoku Electric, which received its first LNG deliveries in March 1990.

“Over the past two decades, the North West Shelf Venture has enjoyed a strong friendship and a mutually beneficial business relationship with our highly valued customer, Chugoku Electric,” he said.

“We look forward to extending our relationship with Chugoku and continuing to supply LNG from our state-of-the-art expanded LNG processing facility at Karratha in the Pilbara region of Western Australia.”

Chugoku Electric president Shigeo Shirakura signed the agreement late yesterday with Woodside chief operating officer Keith Spence, as well as senior representatives from the North West Shelf Venture participant companies.

The six equal participants in the NWS Project are: Woodside Energy (16.67% and operator); BHP Billiton (North West Shelf) (16.67%); BP Developments Australia (16.67%); Chevron Australia (16.67%); Japan Australia LNG (MIMI) (16.67%); and Shell Development (Australia) Proprietary Limited (16.67%).

CNOOC NWS is also a member of the North West Shelf Venture but does not have an interest in North West Shelf Venture infrastructure.

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