Woodside Petroleum Ltd., operator of the $30 billion Browse project in Western Australia, said an initial accord to supply liquefied natural gas from the venture to PetroChina Co. expired on Dec. 31.
The agreement, signed in Sept. 2007, was for the potential sale of as much as 3 million metric tons of LNG a year, Perth- based Woodside said in statement today. Talks are continuing with Asia-Pacific customers for the sale of gas from its Australian projects, Woodside said.
The Browse partners, which include Chevron Corp and BP Plc, last month accepted a government deadline and agreed to decide by April how to develop the venture, in return for the renewal of gas field permits. Woodside has entered into an agreement with Osaka Gas Co. to progress talks for the potential sale of up to 1.5 million tons of LNG from the project, it said today.
Gas sales to PetroChina were expected to begin between 2013 and 2015 under the initial agreement and this timeline is “no longer realistic,” Yvonne Ball, a Perth-based Woodside spokeswoman, said by phone today. The two parties weren’t able to reach an agreement to extend the deal, Ball said.
Woodside was little changed in Sydney trading, rising 0.1 percent to A$47.25 at 10:34 a.m., compared with the 0.1 percent decline in the benchmark S&P/ASX 200 Index.
The provisional agreement with PetroChina was valued at about A$45 billion ($40 billion), Woodside Chief Executive Officer Don Voelte said in August.
An accord with CPC Corp Taiwan for the potential sale of between 2 million and 3 million tons of Browse LNG a year for a period of 15 to 20 years remains in place, Woodside said.