Woodside, Japan Australia LNG Terminate Browse LNG Gas Sales Deal

Woodside and Japan Australia LNG (MIMI) have terminated the sales and purchase agreement (SPA) for around 1.5 million tonnes of LNG a year from the Browse LNG development.

The SPA was conditional upon a final investment decision on Browse being taken by 31 December 2013.

“As a result of the Browse joint venture participants deciding not to proceed with an onshore development and to enter Basis of Design for a floating LNG development concept, both parties recognise that this condition will not be satisfied. Consequently, MIMI has today given Woodside notice terminating the SPA,” Woodside said in a statement on Thursday.

The two companies also entered into an agreement to jointly market co-mingled LNG to the Asian market, primarily to Japanese customers. Woodside said that this agreement has not been terminated.

“Woodside and MIMI continue working actively on marketing of co-mingled LNG volumes in the Japanese market. In addition, Woodside remains in ongoing discussions with other regional customers regarding potential sales from its portfolio of Australian LNG developments, including Browse,” Woodside said.

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