The overall agreement sets out the basis upon which the parties will negotiate to conclude terms for: the purchase by Tokyo Gas of 1.2 million tonnes per annum (mtpa) of LNG for 20 years from 2015, to be supplied from the QCLNG facility and from BG Group’s global LNG portfolio; the acquisition by Tokyo Gas of a 1.25% interest in the reserves and resources of certain QGC tenements in the Walloons Fairway of the Surat Basin in Queensland; and the purchase by Tokyo Gas of a 2.5% equity interest in QCLNG Train 2, the second of two liquefaction trains that will form the first phase of the QGC-operated QCLNG development.
BG Group and Tokyo Gas intend to complete negotiations and execute fully termed agreements by the end of 2010. The final agreements will be conditional on BG Group making a final investment decision on QCLNG, expected later this year. QCLNG is expected to produce first LNG by 2014.
Frank Chapman, chief executive of BG Group, said: “The agreements extend further our long and fruitful relationship with Tokyo Gas, bringing a new source of natural gas to Japan – the world’s largest LNG market. Tokyo Gas will become one of our important foundation customers for Queensland Curtis LNG, as we progress rapidly towards project sanction later this year.”
The two-train QCLNG development on Curtis Island, near Gladstone, Queensland is underpinned by BG Group LNG agreements to deliver cargoes from both QCLNG and from the group’s global LNG portfolio to customers across the Pacific Basin.
Those agreements include: a 20-year 3.6mtpa sales and purchase agreement with the China National Offshore Oil (CNOOC); a 21-year sales and purchase agreement to supply 1.7mtpa to Quintero LNG in Chile; and a 20-year agreement to supply up to 3mtpa to customers in Singapore.
