Methanex
Australia gas sale and purchase agreement
Posted: 30 September 2003
North West Shelf Gas Pty Limited advises that the amended conditional
gas sale and purchase agreement between Methanex Australia Pty Ltd
and the North West Shelf Venture Participants lapsed on 30 September,
2003.
The agreement lapsed following advice from the Methanex Board that
it was not proceeding with its proposed methanol project on the
Burrup Peninsula, near Karratha, in Western Australia.
The General Manager North West Shelf Gas, John Richards, said he
was disappointed that the proposed Methanex project did not manage
to satisfy all of the conditions necessary to allow the Methanex
Board to proceed.
“North West Shelf Gas has provided extensive support to Methanex
in its efforts to develop a methanol plant in Western Australia
over the past three years,” Mr Richards said. "During
that time we have committed an enormous amount of time, effort and
assistance in an effort to make Methanex's project a reality in
a challenging environment."
The amended gas sale agreement with Methanex was for 130 terajoules
of gas a day over 16 years, starting in 2006.
The North West Shelf Venture Participants and Methanex first signed
a gas sale and purchase Agreement on 20 December 2001 for the supply
of 200 terajoules of gas a day over 25 years from 2005.
On 13 March 2003 Methanex announced that it had put its project
on hold as the company studied an alternative design to support
its long-term methanol supply to its customers in Asia Pacific from
the Burrup.
The agreement was extended while Methanex assessed its project
options, leading to an amended gas sale agreement being signed on
30 May 2003, valid until 30 September 2003.
Interests in the conditional gas sales agreement were owned equally
by the operator, Woodside Energy Ltd. (16.67 per cent); BP Developments
Australia Pty Ltd (16.67 per cent); ChevronTexaco Australia Pty
Ltd (16.67 per cent); BHP Billiton Petroleum (North West Shelf)
Pty Ltd (16.67 per cent); Shell Development (Australia) Proprietary
Limited (16.67 per cent); and Japan Australia LNG (MIMI) Pty. Ltd.
(16.67 per cent).
Posted by Richard Price,
Editor Pipeline Magazine
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