North West Shelf LNG gets another buyer

Partners in the North West Shelf LNG project Monday said they will sell Tohoku Electric Co. Ltd. 400,000 tonnes/year beginning in April 2005. Tohoku, of Sendai, Japan, serves a population of more than 12 million on the northern end of Honshu.

Feb. 5, 2001

2 min read

MELBOURNE, Feb. 5�Partners in the North West Shelf LNG project Monday said they will sell Tohoku Electric Co. Ltd. 400,000 tonnes/year beginning in April 2005.

Tohoku Electric will be a long-term customer. It is not in the group of eight Japanese companies already committed to buy North West Shelf LNG.

Tohoku Electric, of Sendai, Japan, serves seven prefectures covering the northern end of Honshu. It has the largest service area in Japan and serves a population of more than 12 million.

Last September, Tokyo Gas Co. and Toho Gas Ltd. signed for 1 million tonnes/year and in January Osaka Gas Co. Ltd. contracted for the same volume (OGJ Online, Jan. 16, 2001). Negotiations are continuing with other potential Japanese customers.

Woodside Energy Ltd., Melbourne, said the deal with Tohoku Electric underpins the North West Shelf Venture�s proposed $2.4 billion expansion of its LNG operations. The expansion would include a 4.2 million tonne/year LNG processing facility and a 42-in. trunkline between the plant and gas fields 130 km off Australia.

The venture's partners are asking their boards to approve the expansion before Apr. 1.

The six equal partners in the venture are Woodside (operator), 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.