By the OGJ Online Staff
LONDON, May 15 -- Shell International Gas Ltd. Tuesday has agreed the key terms of a deal to purchase up to 3.7 million tonnes of liquefied natural gas from the North West Shelf project in Australia for future delivery to the Americas.
The final sales and purchase agreement is expected to be concluded in the coming months.
The LNG purchase runs over 5 years starting in 2004, and will use Shell's new LNG carriers, including the two recently ordered from Daewoo Shipbuilding and Marine Engineering Company Ltd. and Mitsubishi Heavy Industries, scheduled for delivery in 2003 and 2004 (OGJ Online, May 14, 2001).
Shell said the volumes would be purchased "free on board" -- where the buyer takes responsibility for the cargo at the point of delivery to the vessel -- from the buildup period of the North West Shelf project's fourth train expansion.
Peter de Wit, Shell Gas & Power's Asia-Pacific director, said, "The deal will assist the project in its early years. This provides Shell and the North West Shelf with a strong advantage in developing new LNG markets."
Although the main destination for the LNG is the Americas, Shell said other markets in Spain and India, through the Hazira terminal, are "being considered."
The participants in the North West Shelf Venture are Woodside Energy Ltd., 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.
