Another supply deal underpins NW Shelf expansion

March 25, 2002
Osaka Gas Co. Ltd. has finalized an agreement to purchase 1 million tonnes/year of LNG from the Australian North West Shelf venture expansion, said project operator Woodside Energy Ltd. This agreement covers a 30-year supply beginning in 2004.

Osaka Gas Co. Ltd. has finalized an agreement to purchase 1 million tonnes/year of LNG from the Australian North West Shelf venture expansion, said project operator Woodside Energy Ltd. This agreement covers a 30-year supply beginning in 2004.

Osaka Gas already is taking 790,000 tonnes/year of LNG under a 20-year agreement that began in 1989.

The agreement is the second such contract signed for the expansion project.

North West Shelf partners previously signed letters of intent for sale of 1.37 million tonnes/year of LNG to Tokyo Gas Co. Ltd. and Toho Gas Co. Ltd. (OGJ Online, Jan. 16, 2001).

The $2.4 billion expansion project, currently under way, involves a fourth LNG train at the onshore gas plant on Australia's Burrup Peninsula.

The expansion includes construction of a 4.2 million tonne/year processing facility and a 42-in. trunkline linking the plant and gas fields 130 km offshore (OGJ Online, Dec. 21, 2000).

Venture partners are BHP Petroleum (North West Shelf) Pty. Ltd., BP Developments Australia Pty. Ltd., Chevron Australia Pty. Ltd., Japan Australia LNG (MIMI) Pty. Ltd., and Shell Development (Australia) Pty. Ltd.