Regional LNG: Woodside, Kansai Electric sign HoA for Pluto LNG

Australian oil and gas company Woodside Petroleum Ltd said Wednesday it had signed a heads of agreement with Japanese firm Kansai Electric Power Co., Inc for the supply of between 1.75 and 2 million tons of LNG a year over 15 years from Woodside?s 100 percent-owned Pluto gas field in Western Australia.

Woodside said in a statement that the agreement covers supply from the end of 2010, on an ex-ship basis, with an option to extend supply by five years. The LNG sales and purchase agreement is expected to be negotiated by the end of 2006.

The agreement also provides for Kansai Electric to purchase a 5 percent equity interest in the Pluto development.

This agreement is the second agreement for Pluto volumes in the past four months. Previously, Woodside signed a heads of agreement with Tokyo Gas Co for the supply of between 1.5 and 1.75 million tons of LNG a year on an ex-ship basis.

The Pluto LNG development is based on the Pluto discovery, 190km north-west of Karratha in permit WA-350-P. The field was discovered in April 2005.

Development options for the project include an offshore production platform, an offshore trunkline, up to two LNG processing trains with capacity of five to seven million tons a year, loading jetty and associated infrastructure. (Robert)