NORTH WEST SHELF LNG SELLERS SIGN SALES AND PURCHASE AGREEMENT WITH TOHOKU ELECTRIC
3 December, 2007
Further to its news release on 16 March 2007, North West Shelf LNG sellers confirm that following the signing of a binding Heads of Agreement earlier this year a Sales and Purchase Agreement (SPA) has now been executed with Tohoku Electric Power Company Incorporated which results in an increase of the supply of LNG by about 0.5 million tonnes a year starting in 2010 for eight years.
This agreement increases the North West Shelf Venture LNG sales to Tohoku Electric to about 1 million tonnes a year from 2010. The agreement also ensures that the total volume is now delivered on an ex-ship basis.
North West Shelf Australia LNG President Peter Cleary welcomed the completion of the SPA between Tohoku Electric Power Company Incorporated and each North West Shelf seller.
"We highly value our long standing business relationship and friendship with our Japanese customers. We are honoured that just four years after signing its first SPA with us that Tohoku Electric has chosen to double its purchase of LNG from the North West Shelf LNG sellers.
We believe this to be a statement of confidence in safe, secure and reliable supplies of LNG from the North West Shelf," Mr Cleary said.
The six equal participants in the North West Shelf LNG Venture are: BHP Billiton Petroleum (North West Shelf) Pty Ltd; BP Developments Australia Pty Ltd; Chevron Australia Pty Ltd; Japan Australia LNG (MIMI) Pty Ltd; Shell Development (Australia) Proprietary Limited; and Woodside Energy Ltd (Operator).
CNOOC NWS Private Limited 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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