This preliminary agreement between Woodside and CPC sets out the key commercial parameters normally included in a sale and purchase agreement, including the LNG price. It also facilitates discussions in relation to the potential sale of LNG from Woodside's other proposed Australian LNG developments.

The parties will negotiate in good faith to conclude an LNG supply agreement based on the key terms agreement, according to Woodside.

“Supply from the Browse LNG Development is targeted to commence during the period 2013 to 2015,” the company said.

“The agreement is subject to conditions including a final investment decision and the receipt of relevant government approvals.”

The other Browse LNG joint venturers have not been party to the agreement to this point, but the agreement provides the opportunity for commingled sales, according to Woodside.

CPC is the dominant player in all sectors of Taiwan’s oil and gas industry. Taiwan is the third largest LNG market in the Asia Pacific region behind Japan and South Korea.

Woodside has not previously sold LNG to Taiwan under a long-term agreement.