GUANGDONG LNG AGREEMENT
13 December, 2004
North West Shelf Australia LNG, on behalf of the North West Shelf Venture participants, and the Guangdong Dapeng LNG Company Ltd. (GDLNG) advise that agreements have been finalised for the sale and purchase agreement for LNG supply to Guangdong, China.
Since the signature of the conditional sale and purchase agreement in October 2002 in Canberra for a 25-year supply, the North West Shelf LNG Sellers and GDLNG have worked towards satisfaction of conditions precedent to the LNG sale and purchase agreement. All conditions in the contract have now been satisfied.
Finalisation of the agreement concludes the first phase of the Guangdong LNG project and meets the requirements of the project Feasibility Study Report, which was approved by the Chinese Government in October 2003.
The fully effective sale and purchase agreement was signed at a special ceremony in Perth on 12 December 2004, together with various shipping agreements in satisfaction of the sale and purchase agreement conditions precedent.
Wu Zhenfang, Chairman of Guangdong Dapeng LNG Company Ltd said that the conclusion of the LNG supply contract was a major milestone in the development of the Guangdong LNG project.
"The Guangdong LNG project is the start of a very important journey for China in developing a world-class natural gas industry," Mr Wu said.
"We are very pleased to have reached this important milestone and look forward to the next stage of our partnership with the supply of LNG in 2006."
John Banner, President of North West Shelf Australia LNG said that the conclusion of the deal was a good example of co-operation between industry and governments in Australia and China.
"This is an important milestone and all parties should feel proud of playing a role in the development of China's first LNG project," Mr Banner said.
"We look forward to the day when the first cargo of LNG leaves Australian shores for China in 2006 and to opportunities on how we can support the expected rapid growth in LNG demand in Guangdong."
The finalisation of LNG supply arrangements now clears the way for other components of the overall commercial package negotiated with China to come into effect. These components are:
- Equity participation in the North West Shelf Venture by CNOOC Limited
- Shipping arrangements through a Sino-Australian joint venture
- Australia-China Natural Gas Technology Partnership Fund
The six equal participants in the North West Shelf Venture are: BHP Billiton Petroleum (North West Shelf) Pty Ltd; BP Developments Australia Pty Ltd; ChevronTexaco Australia Pty Ltd; Japan Australia LNG (MIMI) Pty Ltd; Shell Development (Australia) Proprietary Limited; and Woodside Energy Ltd (Operator).
The Guangdong Dapeng LNG Company Ltd. participants are:
|CNOOC Gas &
|Pearl River Delta
Group Co., Ltd.
Group Co., Ltd.
Industrial General Company
Gas General Company
China Gas Investment Limited
(Natural Gas) Limited
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