Regional LNG: Tokyo Gas may not extend LNG deal with NWS: Report
Thursday, June 9 2005 - 02:04 AM WIB
Tokyo Gas signed an agreement with the Woodside Petroleum Ltd.-operated North West Shelf in 1985 to buy 790,000 tonnes per year of LNG. The supply agreement expires in 2009.
"We are talking with the North West Shelf about renewing our contract but we have not decided on anything -- the volume or even if we will renew it with the North West Shelf," Takashi Tanaka, Tokyo Gas general manager procurement and trading, told Reuters on the sidelines of an oil and gas conference.
"There are almost 10 projects that we rely on for supply including Malaysia, Indonesia, Brunei and Qatar," he added.
Woodside said in April it was in talks with eight Japanese customers, including Tokyo Gas, to renew a total 7.2 million tpy of long-term LNG and hoped a "good portion" would be re-signed in the next few months.
The 11.7 million-tpy North West Shelf, off Western Australia, also sells LNG to South Korea, the world's second-biggest importer, and is due to deliver to China's first LNG terminal from next year.
Tokyo Gas said in March it would buy about 8.3 million tonnes of LNG for the business year from April -- an increase of around 2.4 percent -- as industry demand was expected to be strong.
Even though more LNG buyers are buying more of the fuel under short-term contracts, Tanaka told the conference on Tuesday that long-term contracts, typically 15-20 years, remained fundamental for energy security.
The six equal partners in the North West Shelf joint-venture are Woodside, BHP Billiton Plc./Ltd. , Chevron Corp. , BP Plc. , Japan Australia LNG (MiMi) Pty Ltd. and Royal/Dutch Shell Group .(*)