NORTH WEST SHELF INCREASES LNG SALES TO TOHOKU ELECTRIC
16 March, 2007
A major increase in liquefied natural gas supply with a long-term Japanese customer is a statement of confidence in safe, secure and reliable supplies of LNG from the North West Shelf Venture, according to North West Shelf Australia LNG.
Tohoku Electric Power Company, Incorporated and the six participants in the North West Shelf Venture today signed a binding heads of agreement. The agreement contains several elements including:
- An increase in quantities under an existing agreement
- Conversion of that agreement from a loaded basis to a delivered ex-ship basis
- Sale and purchase of a new quantity
The net effect of these elements is to increase the supply of LNG by about 0.5 million tonnes a year starting in 2010 for eight years. Total North West Shelf Venture LNG sales to Tohoku Electric will now be about 1 million tonnes a year from 2010.
North West Shelf Australia LNG President Peter Cleary welcomed today's signing of a heads of agreement between Tohoku Electric Power Company, Incorporated and the Venture.
"Tohoku Electric became a major customer of the North West Shelf Venture with a contract signed in 2003," Mr Cleary said.
"We are honoured that three years after this Tohoku Electric has chosen to double its purchase of LNG from the North West Shelf Venture."
Tohoku Electric is centred in Sendai and provides electricity to the seven prefectures covering the northern end of Honshu. Tohoku Electric has the largest service area in Japan and serves a population of over 12 million.
The six equal participants in the North West Shelf Venture are: BHP Billiton Petroleum (North West Shelf) Pty Ltd; BP Developments Australia Pty Ltd; Chevron Australia Pty Ltd; Japan Australia LNG (MIMI) Pty Ltd; Shell Development (Australia) Proprietary Limited; and Woodside Energy Ltd (Operator).
CNOOC NWS Private Limited is also a member of the North West Shelf Venture but does not have an interest in North West Shelf Venture infrastructure.
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