The NWS signed Letters of Intent with Osaka Gas, Tohoku Electric and Kyushu Electric in the first quarter of last year. Last October, the NWS signed a sales and purchase agreement with Tokyo Gas and Toho Gas for the purchase and supply of 1.37 mtpa of LNG commencing in 2004. Key agreements have also been signed with Chubu Electric and Shell Gas & Power.
While the NWS has been busy shoring up its traditional Japanese customer base, this has not stopped some of the joint venture partners seeking greener pastures, namely in China and the United States.
The NWS scored a minor victory last month when it was shortlised along with Qatar and Indonesia for a lucrative 3mtpa Chinese LNG contract.
Australia is pulling out all the stops to win the contract. Some in the market have speculated the NWS could offer the Chinese a stake in the fifth LNG train or the gas reserves, which underpins the project.
Two partners in the NWS project, Woodside and Shell, are also heavily involved in the development of gas from the Sunrise Field in the Timor Sea. Woodside has endorsed Shell's world first floating LNG production vessel though they are still to convince the two other stakeholders, Phillips Petroleum and Osaka Gas Co.
The target market for Timor Sea gas would be the United States, described by some commentators as the "world's most attractive gas market". If all goes to plan, the feasibility study should be launched this year with a final decision on the project to be made by the middle of next year. Production would begin in 2007 at a rate of 4 mtpa.
