By JAMES PATON
PERTH (Bloomberg) -- Mitsubishi and Mitsui
& Co. withdrew from an agreement to buy liquefied natural
gas from Woodside Petroleums Browse venture in Australia
after delays to the project.
The Mitsui and Mitsubishi venture, Japan Australia LNG Pty,
wont go ahead with the purchase of about 1.5 Mmtpy of LNG
annually from Browse because the deal depended on the project reaching an investment
decision by the end of 2013, Perth-based Woodside said today in
Woodside scrapped a plan last year to build Browse onshore
in Western Australia, estimating later that it would have cost
more than $71 billion. Instead, the company plans to decide in
mid-2015 whether to proceed with a plan to liquefy the gas on
giant ships offshore, using Royal Dutch Shell technology.
The Japanese companies, which reached a deal in 2012 to buy
a 14.7 % stake in Browse for $2 billion, will continue to work
with Woodside to jointly sell LNG from the venture to the Asian
market, according to the statement.
The Australian company remains in talks with other regional
customers to sell gas from its LNG projects, including Browse,
according to the statement. PetroChina, Shell and BP are also
partners in the Browse development.
Global demand for LNG is growing at a very fast
pace, Woodside said in an e-mailed response to
Woodside believes Browse will play an important part
in future regional supply of safe and reliable LNG.