Regional LNG: North West Shelf expands LNG sales to Chubu Electric

Australian LNG producer The North West Shelf Venture and Chubu Electric of Japan have signed a heads of agreement for the ongoing supply of liquefied natural gas from Australia?s largest resources project, operator Woodside Petroleum said on Thursday.

Chubu Electric is the third of the North West Shelf Venture?s original Japanese LNG customers to renew its long-term LNG supply requirements this year.

In a seven-year deal commencing April 2009, the North West Shelf Venture will supply over 24 trillion British thermal units of LNG, amounting to just less than 0.5 million tonnes, a year to Chubu Electric on an ex-ship basis.

Chubu Electric is Japan?s third largest power utility and the second largest consumer of LNG. Chubu?s service area, centred around Nagoya, is home to more than 15 million people and accounts for over 20 per cent of Japan?s total industrial output.

Chubu Electric is a long standing customer of NWSV, having signed a foundation contract in 1985 that ends in March 2009.

The six equal participants in the NWS Venture are: Woodside Energy Ltd. (16.67%); 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 but does not have an interest in North West Shelf Venture infrastructure.(alex)