Woodside, PetroChina ax LNG deal

Jan. 4, 2010 at 12:39 PM
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PERTH, Australia, Jan. 5 (UPI) -- Australia's Woodside Petroleum announced Monday a deadline for a $40 billion liquefied natural gas deal with PetroChina expired without a formal agreement.

Woodside announced the key terms of a deal signed in 2007 for the sale of more than 2 million tons of LNG from its Browse LNG development project expired at the end of 2009.

The agreement at the time was lauded as one of the biggest export contracts for LNG from Australia.

Gas sales under the 2007 agreement were expected for CNPC by 2013 though the terms of the deal were considered unreasonable, The Financial Times reports.

Woodside said a 2007 agreement for the sale of more than 2 million tons of LNG per year remained in place with CPC Corp. Taiwan. The company added it was in discussions with Osaka Gas Co. Ltd. for the potential sale of up to 1.5 million tons of LNG from the Browse project.

Woodside said it agreed with PetroChina to keep "each other informed of progress in their respective LNG export and LNG import projects."

Browse off the Western Australia coast relies on gas from three fields holding an estimated 20 trillion cubic feet of natural gas and 300 million barrels of condensate.

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