LNG sale and purchase agreement signed with Chubu Electric
Posted: 22 January 2004
North West Shelf Australia LNG advises that the NWS Venture LNG
Sellers and Chubu Electric Power Company, Inc today signed a sale
and purchase agreement for 0.6 million tonnes of LNG a year starting
2009.
The 15-year contract finalises a key terms agreement signed with
Chubu Electric in August 2001.
The agreement also represents the last of the sale and purchase
agreements with the NWS Venture's customers that have underpinned
the expansion of the NWS Venture's LNG processing facilities at
its gas plant near Karratha, Western Australia.
The NWS Venture is currently building a fourth LNG processing train
with a capacity of 4.2 million tonnes of LNG a year, significantly
increasing capacity from an existing 7.5 million tonnes of LNG a
year.
A second offshore trunkline is also being constructed, enhancing
operational reliability and providing opportunities for growth.
A ninth LNG ship, due for delivery in April 2004, will add capacity
to the Venture’s shipping fleet of eight purpose-built LNG
ships.
NWS Australia LNG President John Banner said that the NWS Venture
was delighted to be continuing its business relationship with Chubu
Electric.
"This is a landmark day for the North West Shelf Venture as
we expand upon a relationship that has been built over the past
15 years of reliable LNG deliveries,” Mr Banner said. “The
agreement signed today is a sign of confidence in the NWS Venture
as a dependable producer and supplier of LNG at a time of increasing
competition in the LNG market. We look forward to continue building
on the strong ties that the Venture has established with its valued
Japanese customers.”
Chubu Electric is an existing customer of the NWS Venture and is
Japan's third largest power company based in the city of Nagoya.
The utility is the second largest importer of LNG into Japan with
LNG-fired power stations accounting for more than 40% of its total
generating capacity. North West Shelf Australia LNG is the LNG marketing
organisation for the North West Shelf Venture.
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; ChevronTexaco
Australia Pty Ltd; Japan Australia LNG (MIMI) Pty Ltd; and Shell
Development (Australia) Proprietary Limited.
For more information see www.woodside.com.au
Posted by Richard Price,
Editor Pipeline Magazine
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