Regional LNG: 1st LNG cargo for China loading at Australia?s North West Shelf

Australian oil firm Woodside Petroleum announced on Wednesday that the first LNG cargo to be delivered from North West Shelf LNG plant to China is being loaded near Karratha in Australia?s far north Pilbara region of Western Australia.

The North West Shelf Venture vessel, Northwest Sea Eagle, is scheduled to deliver the 125,000m3 cargo to China?s first LNG receiving terminal at Guangdong in southern China in late May.

Woodside?s North West Shelf Ventures Director, Dr Jack Hamilton, said the loading of the inaugural cargo to China marked the official start of a 25-year trade relationship between the Venture and its newest customer, Guangdong Dapeng LNG Company Ltd.

In October 2002, the North West Shelf Venture and Guangdong Dapeng LNG Company Ltd signed a sales and purchase agreement for the supply of more than 3.3 million tonnes of LNG a year for 25 years.

A new joint venture, China LNG Joint Venture was later established within the overall North West Shelf Venture to accommodate Chinese National Offshore Oil Corporation Ltd (CNOOC).

CNOOC holds a 25% share in the China LNG Joint Venture, with each of the existing NWS Venture participants owning 12.5%. CNOOC is entitled to gas and associated liquids equal to about 5.3% of North West Shelf Venture reserves and titles.

CNOOC will pay a tariff to the North West Shelf Venture participants to use infrastructure to produce and process gas and associated liquids from its acquired gas resources.

The six equal participants in the NWS Venture are: Woodside Energy Ltd. (16.67% and operator); BHP Billiton (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) Proprietary Limited (16.67%). CNOOC NWS Private Limited is also a member of the North West Shelf Venture and has a 25% interest in the China LNG Joint Venture which was established in December 2004 to accommodate CNOOC and to supply LNG to Guangdong Dapeng LNG. CNOOC does not have an interest in North West Shelf Venture infrastructure.(alex)