The two companies have also committed to a work program that would allow a financial investment decision to be made on the Browse Basin project in the second quarter of next year.

Nexus managing director Ian Tchacos said the deal would allow the joint venture to accelerate the progress of the Crux field development.

“Osaka Gas is an industry leader with a long track record in the downstream LNG business,” he said.

This relationship would give Nexus additional financial support and marketing capability, enhancing its competitive standing in the Australian oil and gas sector, and the Asia Pacific LNG and gas market, Tchacos said.

“The transaction also reflects the resource potential and value of the project, and lays the foundations for a strong partnership with a respected downstream industry player with extensive experience in Asia Pacific LNG and gas markets,” he said.

Based on the transaction, the Crux project has an implied value of $500 million.

Nexus and Osaka Gas have also agreed to do joint studies to identify and secure exploration opportunities targeting potential gas resources.

With a $A9.1 billion market capitalisation, Osaka Gas is the seventh largest gas utility in the world, importing over 7 million tonnes of LNG per year.

It owns and operates two LNG receiving terminals, a commercial and domestic gas distribution system, and power generating assets in Japan’s Kansai region.