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BHP Billiton Signs Heads Of Agreement With Chugoku Electric

BHP Billiton, together with the other participants in the North West Shelf Venture, has signed an unconditional and binding heads of agreement with Chugoku Electric Power Co., Inc. for the long-term supply of liquefied natural gas (LNG).

The 12-year agreement, commencing in April 2009, is for the supply of between 1.2 and 1.4 million tonnes of LNG or about 22 LNG cargoes a year to Chugoku Electric on an ex-ship basis.

BHP Billiton’s Group President Energy, Mr Philip Aiken, said Chugoku Electric was the first of the North West Shelf Venture’s original customers to renew its long-term LNG supply requirements with the project.

“We are pleased to be continuing to build on such a strong and highly valued relationship with Chugoku Electric.”

“The signing is a significant milestone and reflects our interest in extending our long-term relationship with our existing buyers in Japan. The North West Shelf Venture continues to provide a high value product based on a reputation as a safe, stable and reliable supplier of LNG,” Mr Aiken said.

The six equal participants in the NWS Project are:  Woodside Energy Ltd. (16.67% and operator); BHP Billiton Petroleum (North West Shelf) Pty Ltd (16.67%); BP Developments Australia Pty Ltd (16.67%); Chevron Australia Pty Ltd (16.67%); Japan Australia LNG (MIMI) Pty Ltd (16.67%); and Shell Development (Australia) Pty Ltd (16.67%). CNOOC NWS Private Limited is also a member of the North West Shelf Venture but does not have an interest in North West Shelf Venture infrastructure.