Gas sale of Woodside to Japan falls through

Gas sale of Woodside to Japan falls throughA deal to purchase more than a million tonnes of gas every year from Woodside Petroleum's planned Browse development in Western Australia has been deserted by Japanese investors. Woodside and MIMI signed their deal in May 2012, proposing that the Japanese purchase 1.5 million tonnes of Browse LNG each year, or 13 per cent of the project's output. Woodside had two deals coming up with the investment company MIMI. One was to jointly market liquefied natural gas in Asia, and the other was that, MIMI committed to buy 1.5 million tonnes of LNG per year off Woodside's Browse development.

The later deal was however conditional on a final investment decision on Browse which was to be made by the end of 2013. However Woodside and its partners decided to drop the earlier plan to process the gas onshore and now are exploring floating platform options.

Woodside said that MIMI has informed it that it has decided to exercise its right to pull out of the deal.

However, it says the deal for MIMI to jointly market the gas in Asia, mainly to Japanese customers, holds good. Woodside said in a statement on Thursday "As a result of the Browse joint venture participants deciding not to proceed with an onshore development and to enter basis of design for a floating LNG development concept, both parties recognise that this condition will not be satisfied." Subsequently, today MIMI has given Woodside notice terminating the sales and purchase agreement.