Woodside Petroleum Limited sells more LNG to Japan
Woodside Petroleum Limited (ASX: WPL) announced this week that it has entered into a new agreement with Chubu Electric Power Company to supply up to 1.5 million tonnes of liquefied natural gas (LNG) to the Japanese company.
Woodside didn’t disclose any financial details in its brief announcement, but did note that the deal will begin in April and run for three years. Chubu Electric’s LNG will be sourced from Woodside Petroleum’s Pluto offshore gas field, located near Karratha in Western Australia.
This isn’t the first deal Woodside has made with Japanese energy companies. Since 2008, both Kansai Electric and Tokyo Gas have had 15-year sales agreements for Pluto LNG and a 5% stake in the foundation project.
According to Woodside’s website, the Pluto field has delivered around $7.6 billion of gas to date. “The agreement demonstrates the importance of Pluto LNG volumes in meeting growing regional demand for natural gas and also Woodside’s increasingly diverse LNG purchasing, sales and shipping arrangements,” said Woodside CEO Peter Coleman in a statement.
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Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.