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Woodside: $40.4b deal with PetroChina expires

By Qiang Xiaoji (chinadaily.com.cn)
Updated: 2010-01-05 15:41
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Woodside Petroleum, Australia's second-largest oil and gas producer, announced yesterday that the $40.4-billion initial accord to sell liquefied natural gas (LNG) to China is no longer valid, Guangzhou Daily reported.

As the two sides have not agreed on the further cooperation of the deal by the deadline of Dec 31 set by the early stage agreement, the biggest LNG contract signed bewteen the two companies has expired.

According to the agreement inked in 2007 between Woodside and PetroChina Co, China's largest oil company, Woodside would sell no more than 3 million tons of LNG to China annually. The contract would last for 20 years and the companies planned to carry out the contract by 2013.

Related readings:
Woodside: $40.4b deal with PetroChina expires LNG projects are changing China's energy mix
Woodside: $40.4b deal with PetroChina expires Sinopec, ExxonMobil ink Papua New Guinea LNG deal
Woodside: $40.4b deal with PetroChina expires CNOOC buys more LNG from Qatar
Woodside: $40.4b deal with PetroChina expires CNPC to import 2.25m tons of LNG annually from Australia

According to an unnamed source, the Australian company had not reached an agreement with its partner on the investment plan of a project in the west of Australia to provide LNG to China, which led to the failure of its contract with PetroChina.

The investment plan was supposed to begin in the mid of 2012 and it would take several years before the LNG could be supplied to China.
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