Woodside to sell LNG from Pluto to Japanese utility
PERTH (miningweekly.com) – Australian energy major Woodside has signed a sales and purchase agreement with Japanese utility Chubu Electric Power Company to supply about 1.5-million tonnes a year of liquefied natural gas (LNG) over a three-year period, starting in April.
The LNG would be sourced from uncommitted volumes from the Pluto LNG project, offshore Western Australia. Some 39% of Woodside’s 2014 production would be sourced from the Pluto project.
Woodside CEO Peter Coleman said on Tuesday that the sales and purchase agreement added to the company’s long-term relationships with major Japanese energy buyers.
“The agreement demonstrates the importance of Pluto LNG volumes in meeting growing regional demand for natural gas, and also Woodside’s increasingly diverse LNG purchasing, sales and shipping arrangement.”
Pluto LNG is underpinned by 15-year sales agreements with Kansai Electric and Tokyo Gas. Both companies became project participants in 2008, each acquiring a 5% interest in the foundation project.
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