Darwin LNG begins Bayu-Undan shipments

Feb. 2, 2006
ConocoPhillips's Darwin LNG plant at Wickham Point, Australia, on Feb. 2 was loading its first cargo from Bayu-Undan gas field in the Timor Sea into the Japanese LNG carrier Kotowaka Maru.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Feb. 2 -- ConocoPhillips's Darwin LNG plant at Wickham Point, Australia, on Feb. 2 was loading its first cargo from Bayu-Undan gas field in the Timor Sea into the Japanese LNG carrier Kotowaka Maru.

Plans call for the delivery of three collective spot cargoes of LNG to Tokyo Electric and Tokyo Gas before commencement of contract sales. TE and TG will together buy 3 million tonnes/year over 17 years. To satisfy this contract, an LNG carrier will berth at Wickham Point every 7-10 days.

The $2 billion (Aus.), 3.4 million tonne/year shore liquefaction plant, completed late last year, is not expected to begin contract sales until Mar. 1.

ConocoPhillips has approval to produce as much as 10 million tonnes/year and is currently seeking additional gas supplies and markets to justify a second and perhaps third LNG train.

Partners in the LNG project are ConocoPhillips 56.7%, ENI Australia 12.1%, Santos Ltd. 10.6%, Tokyo Timor Sea Resources—a joint venture of buyers Tokyo Electric and Tokyo Gas—10.1%, and Inpex 10.5%.