Regional LNG: Woodside, CPC sign LNG sales deal

Australian oil, gas firm Woodside Petroleum Ltd announced Monday it has has signed a liquefied natural gas (LNG) key terms agreement with CPC Corporation Taiwan for the potential sale of 2 to 3 million tonnes per annum of LNG targeted to come from the Woodside-operated Browse LNG Development off Western Australia for a period of 15 to 20 years.

The agreement including key commercial parameters normally included in a sale and purchase agreement, including LNG price. It also facilitates discussions between Woodside and CPC in relation to the potential sale of LNG from Woodside's other proposed Australian LNG developments.

The parties will negotiate in good faith to conclude an LNG supply agreement based on the key terms agreement, the company said.

Supply from the Browse LNG Development is targeted to commence during the period 2013 to 2015. The agreement is subject to conditions including a final investment decision and the receipt of relevant government approvals.

The Browse Project joint venturers have not been party to the agreement to this point, however the agreement provides the opportunity for commingled sales, the company said.(alex)