06-22-2012, 05:31 PM
Ouch to losing big deals. $90 some billion OTs are foundational deals. Not a ringing endorsement for bloated Aussie projects as better opportunities for investors and OTers exist. I imagine it's possible that Woodside can establish new OT deals at higher prices possibly, however, it looks like that's not the case.
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Josh Lewis 22 June 2012 04:06 GMT
Australian giant Woodside Petroleum has let a supply agreement, worth up to A$45 billion (US$45.3 billion), lapse for its proposed Browse liquefied natural gas development in Western Australia.
Woodside confirmed on Friday that the agreement to supply Taiwan’s CPC with between 2 million and 3 million tonnes of LNG per annum, over a 15 to 20 year period, had been allowed to expire on 21 June on the agreement of both parties.
The agreement was originally signed in 2007 and covered commercial terms, including the LNG price, and also facilitated the possible sale of gas from Woodside's other Australian liquefaction projects, such as Pluto.
Woodside let a similar supply agreement for the project with PetroChina expire at the end of 2009. The Chinese company had also intended to take between 2 million and 3 million tpa from the Browse development.
At the time, PetroChina said it let the deal expire as the Australian company could not supply gas in accordance with the agreed schedule due to delays with the project.
The project was pushed back further earlier this year when Woodside and its partners won government approval to delay a final investment decision on the LNG development until next year.
At the time, Woodside said the extension would give it more time to evaluate its front-end engineering and design work and the results of the tender processes for major contracts.
The Browse project is based on three offshore fields - Torosa, Brecknock, Calliance – which are estimated to hold contingent resources of 15.5 trillion cubic feet of of dry gas and 417 million barrels of condensate.
The fields will provide feedstock gas to a greenfield LNG plant at James Price Point, with production planned initially through three trains at a rate of 12 million tpa.
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Josh Lewis 22 June 2012 04:06 GMT
Australian giant Woodside Petroleum has let a supply agreement, worth up to A$45 billion (US$45.3 billion), lapse for its proposed Browse liquefied natural gas development in Western Australia.
Woodside confirmed on Friday that the agreement to supply Taiwan’s CPC with between 2 million and 3 million tonnes of LNG per annum, over a 15 to 20 year period, had been allowed to expire on 21 June on the agreement of both parties.
The agreement was originally signed in 2007 and covered commercial terms, including the LNG price, and also facilitated the possible sale of gas from Woodside's other Australian liquefaction projects, such as Pluto.
Woodside let a similar supply agreement for the project with PetroChina expire at the end of 2009. The Chinese company had also intended to take between 2 million and 3 million tpa from the Browse development.
At the time, PetroChina said it let the deal expire as the Australian company could not supply gas in accordance with the agreed schedule due to delays with the project.
The project was pushed back further earlier this year when Woodside and its partners won government approval to delay a final investment decision on the LNG development until next year.
At the time, Woodside said the extension would give it more time to evaluate its front-end engineering and design work and the results of the tender processes for major contracts.
The Browse project is based on three offshore fields - Torosa, Brecknock, Calliance – which are estimated to hold contingent resources of 15.5 trillion cubic feet of of dry gas and 417 million barrels of condensate.
The fields will provide feedstock gas to a greenfield LNG plant at James Price Point, with production planned initially through three trains at a rate of 12 million tpa.