Osaka Gas Co. Ltd. signed a letter of intent to purchase another 1 million tonnes/year of liquefied natural gas from partners in the Australian North West Shelf venture, said project operator Woodside Energy Ltd. This agreement and others support the venture's proposed LNG train expansion.
The Osaka agreement provides for the supply of the LNG over 30 years, beginning in mid-2004. The deal could be finalized by the end of March.
Osaka Gas, of the Kansai region of Japan, is taking 800,000 tonnes/year of LNG under a 20-year agreement that began in 1989.The utility provides gas-related services to more than 6 million customers.
Partners in the Australian North West Shelf venture's project last year signed letters of intent for the sale of 1 million tonnes/year of LNG to Tokyo Gas Co. Ltd. and Toho Gas Co. Ltd. (OGJ Online, Sept. 24, 2000).
"Negotiations are continuing with other Japanese customers and agreements for at least an additional 1 million tonnes/year are expected to be concluded in the near future," Woodside said.
The company also said the deals further underpin the North West Shelf venture's proposed $2.4 billion expansion of its LNG operations. The expansion project involves a fourth LNG processing train at the onshore gas plant on the Burrup Peninsula.
Plans for the expansion include the construction of a 4.2 million tonnes/year processing facility and a 42-in. trunkline linking the plant and the venture's gas fields 130 km offshore (OGJ Online, Dec. 21, 2000).
Final approval for the expansion project is expected in the first quarter.
The five other equal participants in the Australian LNG joint venture 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.