BHP Billiton Limited together with other participants in the North West Shelf Venture today announced the signing of a LNG sale and purchase agreement with Korea Gas Corporation (Kogas).

The sale and purchase agreement is the first LNG term contract signed between the North West Shelf LNG Sellers and Kogas, and formalises a Letter of Intent signed by Kogas and the NWS LNG Sellers on 17 January 2003.

Initial LNG volumes will be delivered in late 2003, building to 0.5 million tonnes of LNG a year in 2004.  The term of the contract is seven years and the LNG will be delivered on an ex-ship basis.

The agreement follows the recent announcement of the sale of four LNG cargoes to Korea.

Australia LNG, the North West Shelf Venture’s marketing services organisation outside Japan, managed negotiations on behalf of the North West Shelf LNG Sellers.

BHP Billiton Petroleum Vice President North West Shelf Bill Bloking welcomed Korea Gas Corporation as a long-term customer of LNG from the North West Shelf.

“We are delighted that Kogas has selected the North West Shelf to supply its energy needs and look forward to meeting future energy needs in Korea as opportunities arise,” Mr Bloking said.

Mr Bloking described the agreement with Kogas as a significant achievement in the development of the North West Shelf Venture as a marketer of LNG to the Asian region.

“It is further evidence that we are a supplier of choice, with the North West Shelf now supplying LNG to multiple markets – Japan, China, Korea and spot markets when available”, Mr Bloking said.

BHP Billiton Petroleum has 16.67 per cent equity in the North West Shelf Project.