The 15-year contract finalises a key terms agreement signed with Chubu Electric in August 2001 and also represents the last uncommitted production from the $2.4 billion fourth production train now under construction at its gas plant near Karratha, Western Australia.

The fourth LNG train has a capacity of 4.2 million tonnes of LNG a year, significantly increasing capacity from an existing 7.5 million tonnes of LNG a year.

A second offshore trunkline is also being constructed, enhancing operational reliability and providing opportunities for growth, while a ninth LNG ship, due for delivery in April 2004, will add capacity to the Venture's shipping fleet of eight purpose-built LNG ships.

NWS Australia LNG president John Banner said that the NWS Venture was delighted to be continuing its business relationship with Chubu Electric.

"The agreement is a sign of confidence in the NWS Venture as a dependable producer and supplier of LNG at a time of increasing competition in the LNG market. We look forward to continue building on the strong ties that the Venture has established with its valued Japanese customers."

Chubu Electric is an existing customer of the NWS Venture and is Japan's third largest power company based in the city of Nagoya. The utility is the second largest importer of LNG into Japan with LNG-fired power stations accounting for more than 40% of its total generating capacity.

The six equal participants in the North West Shelf Venture are Woodside Energy (Operator); BHP Billiton Petroleum; BP Developments Australia; ChevronTexaco Australia; Japan Australia LNG (MIMI); and Shell Development (Australia).