Uchenna Izundu
International Editor
LONDON, Jan. 19 -- The Australian Bureau of Agricultural and Resource Economics reported last month that Australian LNG exports are forecast to rise by about 22% to 15.2 million tonnes in 2006-07 and will be worth $197.2 million in the year.
In addition, the Australian North West Shelf partners, which are adding a fifth liquefaction train at a capital cost of $2.4 billion (Aus.), will increase LNG production to about 16 million tonnes/year from late 2008 (OGJ Online, June 20, 2005). Production increases will address burgeoning demand from Asian customers.
Gas consumption in South Korea alone hit 23 million tonnes in 2005 and has been rising at nearly 10%/year since 2000. The world's biggest LNG buyer, South Korea state-owned Korea Gas Corp., agreed Jan. 19 to take 500,000 tpy of LNG from the NWS liquefaction project from April 2007 until 2016, extending a 2003 deal for 500,000 tpy for 7 years.
Kogas, compared with Japanese LNG buyers, has been hesitant to secure long-term LNG supplies, instead purchasing more-costly spot market cargoes to plug its winter shortfall (OGJ Online, June 5, 2006).
The six equal participants in the North West Shelf venture are operator Woodside Energy Ltd. 16.67%, BHP Billiton Petroleum (North West Shelf) Pty. Ltd. 16.67%, BP Developments Australia Pty. Ltd. 16.67%, Chevron Australia Pty. Ltd. 16.67%, Japan Australia LNG (MIMI) Pty. Ltd. 16.67%, and Shell Development (Australia) Pty. Ltd. 16.67%. CNOOC NWS Pvt. Ltd., also a member of the NWS Venture, is not party to this agreement.
Contact Uchenna Izundu at [email protected].