Back to 2008 listContract Concluded for Purchase of LNG from Western Australia Project
March 4, 2008
Chubu Electric Power Co., Inc.
On October 12, 2006, Chubu Electric and six Western Australian LNG sellers signed an agreement of mutual understanding towards a contract to purchase LNG from the Western Australia Project (this was previously announced in a press release on the same date). In accordance with the statement of mutual agreement, the two sides have been working on the details. This is to report that in Sydney today, Chubu Electric and the vendors have sealed the LNG contract.
The period of the new contract will be for seven years starting in FY2009. The contracted volume will be approximately 500,000 tons per year.
Chubu Electric presently purchases approximately 1.05 million tons of LNG per year from the same project, but the period of this contract ends at the end of FY2008.
Regarding the period after the contract expires, Chubu Electric has already concluded a contract to purchase approximately 600,000 tons of LNG per year from the six Western Australian LNG vendors beginning in FY2009. Combined with the contract concluded today (approximately 500,000 tons/year), Chubu Electric will be purchasing in total more than 1.0 million tons of LNG per year from the project starting in FY2009.
The conclusion of this contract with the Western Australia Project which has supplied Chubu Electric for so long will contribute to Chubu Electric's LNG procurement stability.
Overview of contract
1. Sellers: BHP Billiton Petroleum (North West Shelf) Pty. Ltd.
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) Pty. Ltd.
Woodside Energy Pty. Ltd.
2. Buyer:
Chubu Electric Power Co., Inc.
3. Period of contract:
April 2009 - March 2016 (seven years)
4. Contracted volume:
Approx. 500,000 tons/year
5. Delivery conditions:
Delivered ex-ship
The seller arranges for the ship and delivers LNG to the buyer's receiving facility
*There have been no changes from the "Overview of statement of mutual agreement" announced on October 12, 2006.
< Reference >
Reference 1: Western Australia LNG project locator map
Reference 2: List of long term LNG contracts existing and already agreed to
| Project name | Annual contracted volume (typical fiscal year basis) |
Supply period | |
|---|---|---|---|
| Current | Qatar | Approx. 4.0 million tons/year | January 1997 - December 2021 (25 years) |
| Indonesia 73 years | Approx. 2.15 million tons/year | August 1977 - December 2010 (34 years) (extended from 2000) |
|
| Indonesia 81 years | Approx. 1.65 million tons/year | August 1983 - March 2011 (28 years) (extended from 2003) |
|
| Western Australia | Approx. 1.05 million tons/year | August 1989 - March 2009 (20 years) |
|
| Future | Western Australia extension (contract concluded today) |
Approx. 500,000 tons/year | April 2009 - March 2016 (7 years) |
| Western Australia expansion | Approx. 600,000 tons/year | April 2009 - March 2029 (20 years) |
|
| Malaysia | Maximum approx. 540,000 tons/year |
January 2011 - March 2031 (20 years) |
|
| Sakhalin II | Approx. 500,000 tons/year | April 2011 - March 2026 (15 years) |
*Additionally, a basic agreement has been reached on the Gorgon Project (approximately 1.5 million tons/year) (this was previously announced on November 22, 2005). At this time we are in active negotiations working toward conclusion of a contract (with legally binding force).
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