Woodside Signs Sales Agreement with KOGAS

Woodside advises that it has signed a sales and purchase agreement (SPA) with Korea Gas Corporation (KOGAS) for a maximum supply of up to approximately 2.2 million tonnes of liquefied natural gas (LNG) over a three year period commencing in April 2014.

LNG delivered to KOGAS under the SPA will primarily be sourced from previously uncommitted volumes from the Woodside-operated Pluto LNG Plant. The agreement is subject to a number of conditions including obtaining necessary government approvals.

Other terms of this agreement are commercial-in-confidence.

Existing Pluto LNG agreements with foundation buyers provide for LNG delivery of an ex-ship equivalent of approximately 3.25 million tonnes per annum (mtpa). This comprises Kansai Electric 1.75 mtpa and Tokyo Gas 1.5 mtpa. The previously stated delivery to foundation buyers of up to 3.75 mtpa (as announced on 27 July 2007), which includes foundation buyer options of up to 0.5 mtpa, no longer applies.

Woodside CEO Peter Coleman welcomed this agreement with KOGAS and noted it demonstrated Woodside’s ability to supply LNG using increasingly flexible and innovative arrangements.