NWS extends Japanese supply contract

The North West Shelf Venture has shrugged off some stiff regional competition in the LNG market to extend an agreement with the Kansai Electric Power Company for long-term LNG supply.

The agreement is for the supply and purchase of 0.5 million tonnes of LNG a year between 2009 and 2014 and 0.925 million tonnes of LNG a year between 2015 and 2023.

Kansai Electric is an existing customer of the North West Shelf Venture and signed an LNG sale and purchase agreement with the NWS in 1985 for 1.13 million tonnes of LNG a year for 20 years, starting in 1989.

North West Shelf Australia LNG president John Banner, said the venture was delighted to continue its business relationship with Kansai Electric.

"We are very pleased that Kansai Electric has chosen LNG from the North West Shelf Venture to meet its future energy needs," Banner said.

The Kansai Electric Power Company is Japan's second biggest power company and provides electricity to 13 million customers in Japan's Kansai region with a generating capacity of about 35,000 megawatts, from three nuclear plants, 13 fossil-fuelled plants, and 145 hydroelectric plants.

The six equal participants in the North West Shelf Venture are Woodside Energy (operator); BHP Billiton Petroleum (North West Shelf); BP Developments Australia; ChevronTexaco Australia; Japan Australia LNG (MIMI); and Shell Development (Australia).