By the OGJ Online Staff
HOUSTON, Mar. 20 -- Osaka Gas Co. Ltd. finalized an agreement 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 LNG train expansion.
The Osaka agreement provides for the supply of the LNG over 30 years, beginning in 2004.
Osaka Gas, of the Kansai region of Japan, already is taking 790,000 tonnes/year of LNG under a 20-year agreement that began in 1989.The utility provides gas distribution services to more than 6 million customers.
The agreement is the second sales and purchase contract signed for LNG from the expansion project. Partners in the Australian North West Shelf venture's project previously signed letters of intent for the 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 North West Shelf venture's $2.4 billion LNG expansion project—currently under way—involves a fourth LNG processing 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 the venture's gas fields 130 km offshore (OGJ Online, Dec. 21, 2000).
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.