Woodside Loses LNG Partner

abarrelfull wrote on 04 Jan 2010 07:54
Tags: australia lng petrochina woodside

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Woodside, the Australian company, is now on the look out for a new partner for an LNG project.

A deal worth up to $45 billion between Woodside Petroleum and a Chinese company is in doubt after terms were not be settled by a deadline.

Perth-based Woodside says the agreement penned in 2007 with China’s largest oil and gas distributor, PetroChina, has not been settled by the December 31 deadline.

As the timetable for the project slipped, it seems that the Chinese looked elsewhere. Woodside also has less gas to sell than when they signed a preliminary deal in 2007.

Woodside have lost a big chunk of their production offtake

Although the long term prospects for such projects may be good, negotiating a new deal in the current market would be a big challenge.

Woodside currently have a deal with CPC Corporation Taiwan for some of the gas and are talking to Osaka Gas Co Ltd as well.

Details of the Browse project can be found here.

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