The announcement comes as PetroChina allowed an agreement with Woodside for the purchase of 2–3 MMt/a of LNG from the Browse LNG Project to lapse. A key terms agreement had been signed in September 2007, but expired on 31 December 2009.

Woodside has also said that it is involved in ongoing discussions with other Asia Pacific customers in relation to potential sales from its portfolio of Australian LNG developments.

A key terms agreement with CPC Corporation Taiwan announced in November 2007 for the potential sale of 2–3 MMt/a of LNG for 15–20 years from Browse remains in place. Woodside has said that the companies are continuing to negotiate towards a detailed LNG supply agreement.

Meanwhile, the Browse joint venture partners have agreed to the terms and conditions offered by the Federal and Western Australian governments for seven retention leases located in the Browse Basin, offshore Western Australia.

The renewed leases include WA-28-R, WA-29-R, WA-30-R, WA-31-R, WA-32-R, TR/5 and R2.

The terms of the renewals stipulate that certain work commitments are to be made to advance the development of the Browse LNG Project, including the selection of the Kimberley LNG Hub, located at James Price Point, as a development concept unless the joint venture can demonstrate that an alternative development concept is likely to be commercially viable at an earlier time.

A spokesperson from joint venture partner Shell said “We have accepted the renewal conditions for the Browse joint venture retention leases. “Shell will now focus on working with the other joint venture participants to determine the best development concept to pursue, given the conditions set by the joint authority on the retention lease renewals,” the spokesperson said.

The Browse LNG Project is a joint venture between Woodside, Chevron, Royal Dutch Shell, BP and BHP Billiton, and includes the Brecknock, Brecknock South and Tarosa (formerly known as Scott Reef) fields, estimated to contain reserves of over 20 trillion cubic feet of gas and 300 million barrels of condensate.

The fields are located approximately 400 kilometres north, northwest of Broome. The initial development concept for Browse involves offshore facilities and two LNG processing trains, each with a capacity of 7 MMt/a.

Woodside’s other LNG developments include the 4.3 MMt/a Pluto Gas Project and the North West Shelf LNG Plant, both located in Western Australia.