28/02/2014 - 12:55

Woodside signs 2.2mt Korea sales deal

28/02/2014 - 12:55

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Woodside Petroleum has signed a sales and purchase agreement with Korea Gas Corporation for up to 2.2 million tonnes of liquefied natural gas over three years.

Woodside signs 2.2mt Korea sales deal

Woodside Petroleum has signed a sales and purchase agreement with Korea Gas for up to 2.2 million tonnes of liquefied natural gas over three years.

The LNG will be primarily sourced from uncommitted volumes from Woodside's Pluto LNG plant.

The value of the agreement has not been disclosed, with the company citing commercial confidentiality.

Woodside announced a similar deal last month to supply about 1.5mt of Pluto LNG to Japanese utility Chubu Electric Power Co.

The oil and gas giant also announced that its delivery to foundation buyers Kansai Electric Co and Tokyo Gas had been scaled back from 3.75mt per annum to 3.25mtpa, with buyer options of up to 0.5mtpa no longer applying.

Kansai Electric will receive 1.75mtpa, while Tokyo Gas will receive 1.5mtpa.

Woodside chief executive Peter Coleman said the KOGAS deal demonstrated the company's ability to supply LNG using flexible and innovative arrangements.

The company's shares were trading 10 cents lower at $38.05 at 12:51pm WST.

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