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Taiwan's only natural gas importer, CPC, is close to sealing a deal to buy up to 3 million tonnes of liquefied natural gas (LNG) a year from Woodside Petroleum's Browse project, a CPC official said yesterday.
A deal if reached would be the latest in a recent string of contracts among Asian buyers to snap up long-term supplies of the super-cooled gas, and increases the likelihood of Browse going ahead despite rising costs for LNG projects.
The supplies are to start in 2013.
Woodside, Australia's largest independent oil and gas producer, confirmed it was in talks with CPC and other potential Asian buyers for large amounts of LNG, saying key terms of an agreement may soon be signed, but it did not specify the buyer.
Woodside last week said it had agreed to sell 2-3 million tonnes of LNG a year from Browse to PetroChina for 15 to 20 years. The contract could earn up to A$45 billion ($53.5 billion).
PetroChina also signed a 20-year deal with Royal Dutch Shell last week for 1 million tonne a year from the Chevron-led Gorgon project, also in Western Australia.
China's interest in LNG despite rising prices could increase competition among Asian buyers for supplies of the clean fuel, analysts said.
Last month, Woodside formalised a contract to supply 3.75 million tonnes of LNG from its Pluto field to Tokyo Gas and Kansai Electric for 15 years, beginning in 2010.
Woodside, 34 per cent owned by Royal Dutch Shell, plans to build an onshore LNG processing plant on the Burrup Peninsula in northwestern Australia to process gas from its Pluto and Browse gas fields as well as service other players in the region.
Woodside shares last traded up 0.22 per cent at A$45.86, slightly lagging the broader market.
- Reuters
