• Latest news
• Publications
• Media contact
• Images

NORTH WEST SHELF LNG SELLERS COMMEMORATE THE COMPLETION OF RECONTRACTING AGREEMENTS WITH 1985 JAPAN CUSTOMERS AND 20 YEARS OF LNG EXPORTS FROM AUSTRALIA

7 April, 2009

PERTH, WESTERN AUSTRALIA – The North West Shelf LNG sellers and the Premier of Western Australia the Hon. Colin Barnett MLA will today commemorate 20 years of LNG production and exports from Australia’s North West Shelf to Japan.

The commemoration will be held ahead of a Sale and Purchase Agreement (SPA) signing ceremony with the Tokyo Electric Power Company Inc. (Tokyo Electric) which marks the completion of a new era of agreements between the North West Shelf LNG sellers and their eight original customers in Japan including Chubu Electric, Kansai Electric, Chugoku Electric, Kyushu Electric, Tokyo Gas, Osaka Gas and Toho Gas, whose 1985 LNG contracts expire in March 2009.

Following the signing of a binding Heads of Agreement in December 2006, the North West Shelf LNG sellers have executed an SPA with Tokyo Electric for the supply of 2.5 million tonnes of LNG over an eight year period starting in 2009, which will see North West Shelf LNG Venture sales to Tokyo Electric total approximately 0.3 million tonnes a year after 2009.

North West Shelf Australia LNG President Peter Cleary welcomed the completion of the SPA between Tokyo Electric and each of the North West Shelf LNG sellers.

“The North West Shelf LNG sellers highly value their long-standing business relationship and friendship with their Japanese customers and we are delighted that Tokyo Electric and the original customers in Japan have all chosen to continue this relationship through the additional purchase of LNG. This demonstrates the confidence our customers continue to have in the safe, secure and reliable supplies of LNG from the North West Shelf,” Mr Cleary said.

“We have also appreciated Tokyo Electric’s key role as the spokesman of the consortium of Japanese buyers, and the delivery in March of the last North West Shelf cargo under this original agreement was a major milestone for the project.”

Mr Cleary said the 20-year LNG contracts signed in 1985 between the North West Shelf LNG sellers and their original customers in Japan had underpinned the development of LNG production and export facilities at the Karratha Gas Plant in Western Australia.

“These original contracts were instrumental in the successful development of the A$27 billion North West Shelf Project, and have supported continued investment in its infrastructure. This is evidenced by the A$2.6 billion Phase V LNG Expansion and A$1.6 billion Angel platform which were completed in 2008, while the A$5 billion North Rankin redevelopment project is currently underway,” he said.

“With these investments and its ongoing expenditure, the North West Shelf Venture continues to inject millions of dollars into the Australian economy, providing additional employment opportunities and further strengthening Australia’s international export reputation.”

With more than 2500 LNG cargoes delivered to the Asia Pacific region since 1989, LNG exports from the North West Shelf Project have helped establish Australia’s reputation as a major LNG exporter and trade partner.

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) Pty Ltd 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 its infrastructure.

---

---

‹ Back to Press Releases