Regional LNG: North West Shelf extends LNG sales to Kansai Electric

Australian LNG producer The North West Shelf Venture and Kansai 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.

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

In an eight-year deal commencing in April 2009, the North West Shelf Venture will supply an average of around 0.4 million tonnes a year to Kansai Electric on an ex-ship basis.

Kansai Electric is Japan?s second largest power utility and the fifth largest consumer of LNG. Kansai?s service area, centred around Osaka, is home to about 21 million people and accounts for 16 per cent of Japan?s GDP.

Kansai Electric is a long standing customer of the NWSV, having signed an original contract in 1985 that ends in March 2009.

The six equal participants in the NWS Venture are: Woodside Energy Ltd. (16.67% and operator); BHP Biliton 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) 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. (denny)