Regional LNG: Release: NWS LNG sellers finalise Kogas LNG agreement
Monday, March 10 2003 - 01:56 AM WIB
The sale and purchase agreement is the first LNG term contract signed between the North West Shelf LNG Sellers and Kogas, and formalises a letter of intent signed by Kogas and the NWS LNG Sellers on 17 January 2003.
Initial LNG volumes will be delivered in late 2003, building to 0.5 million tonnes of LNG a year in 2004. The term of the contract is seven years and the LNG will be delivered on an ex-ship basis.
The agreement follows the recent announcement of the sale of four LNG cargoes to South Korea.
Australia LNG, the North West Shelf Ventures marketing services organisation outside Japan, managed negotiations on behalf of the North West Shelf LNG Sellers.
The President of Australia LNG, Arthur Dixon, welcomed Kogas as a long-term customer of LNG from the North West Shelf.
"We are delighted that Kogas has selected the North West Shelf to supply its energy needs," Mr Dixon said.
"This agreement reflects the attractiveness to Asian markets of LNG from the North West Shelf, with our customers recognising the advantages of a high quality product backed by an outstanding record in delivery."
The six equal participants in the North West Shelf Venture are: Woodside Energy Ltd. (operator); BHP Billiton Petroleum (North West Shelf) Pty Ltd; BP Developments Australia Pty Ltd; ChevronTexaco Australia Pty Ltd; Japan Australia LNG (MIMI) Pty Ltd; and Shell Development (Australia) Proprietary Limited. (*)
MEDIA INQUIRIES: Tony Johnson, SENIOR ADVISER EXTERNAL AFFAIRS; W: (08) 9348 5034 M: (0417) 916 638