A multi-billion dollar export deal for the sale of Australian liquefied natural gas (LNG) to Japan has been sealed at a formal signing ceremony in Sydney, Woodside Petroleum Ltd. reported Friday.
Woodside Chief Executive Don Voelte signed the Sale and Purchase Agreements with representatives of Tokyo Gas and Kansai Electric of Japan. The agreement provides for the supply of up to 3.75 million tonnes per annum of LNG to Tokyo Gas and Kansai Electric for 15 years, beginning late 2010. The LNG will be supplied from Woodside's Pluto LNG Project. The Board of Woodside Petroleum last month approved development of the project, subject to receipt of final environmental and other regulatory approvals.
The parties also signed agreements to formalize Tokyo Gas and Kansai Electric taking equity in the Pluto project. Tokyo Gas and Kansai Electric will each take 5% equity in the Pluto permit (WA-350-P) and the Pluto Train 1 infrastructure, reducing Woodside's interest to 90%.
Voelte said Friday's signing of the agreements was a formal acknowledgement of the special relationship between Woodside and its Japanese customers. He said Tokyo Gas and Kansai Electric had become customers of the Pluto project at an early stage, and their commitment to the development had allowed Woodside to move quickly to funding approval.<>
"We are proud to have Tokyo Gas and Kansai Electric as our partners in Pluto," Voelte said.