AUSTRALIA'S LNG TRADE EXPANDED TO SOUTH KOREA

Australia's liquefied natural gas export operations continue to take on luster. The massive Northwest Shelf LNG export project will supply a spot cargo of LNG to South Korea in December, the first time South Korea will obtain Australian LNG. Participants in the Australian LNG project recently approved plans for another Northwest Shelf oil and gas field development, including plans for a liquid petroleum gas export program (OGJ, Oct. 11, p. 31).

Nov. 1, 1993

2 min read

Australia's liquefied natural gas export operations continue to take on luster.

The massive Northwest Shelf LNG export project will supply a spot cargo of LNG to South Korea in December, the first time South Korea will obtain Australian LNG.

Participants in the Australian LNG project recently approved plans for another Northwest Shelf oil and gas field development, including plans for a liquid petroleum gas export program (OGJ, Oct. 11, p. 31).

Meantime, a Japanese Group led by Sumitomo Corp. and including Japan's National Oil Corp. acquired a 10% interest in offshore permits covering Petrel and Tern gas fields in the Bonaparte Gulf off northern Australia from Petroz NL for $4.5 million (Australian) ($3 million U.S.).

The Japanese group's participation in the Bonaparte Gulf permits boosts prospects for another Australian LNG export project. Sumitomo, which held a 12% interest in the fields through Kangaroo Oil prior to the most recent acquisition, is studying the feasibility of an LNG export project based on Petrel reserves. Operator Santos Ltd., with 47.5% interest in the permits, plans an appraisal well in Petrel by yearend and another in Tern in early 1994.

Woodside Petroleum Pty. Ltd., operator for the Northwest Shelf group, said the 56,000 metric ton spot sale to South Korea will be delivered by the Northwest Sea Eagle to Korea Gas Corp. at Pyong Taek.

The Woodside group has a 20 year contract with eight Japanese buyers. Sales to Japan are expected to reach 7 million tons/year by 1995. Japanese buyers have taken cargoes in excess of contractual obligations each year since the Northwest Shelf project began exports in August 1989.

Earlier this year, the Woodside group made spot sales of LNG to Spain's Enagas.