New Agreement to Supply LNG to Japan

Deputy Prime Minister and Minister for Trade, Mark Vaile, today welcomed the announcement by North West Shelf Australia LNG (NWS LNG) and Toho Gas that they have signed a heads of agreement which will see a three fold increase of the Venture's original annual LNG supply to Toho Gas.

"North West Shelf's latest deal to supply a long-term Japanese customer further confirms Australia's reputation as a reliable supplier of LNG," Mr Vaile said.

NWS LNG has enjoyed a strong business relationship with Toho Gas, which has been a foundation customer for more than 17 years. The Venture expects that its total supply commitment to Toho Gas will exceed 1 million tonnes a year by 2009.

"The re-signing of the NWS LNG-Toho Gas deal is proof plenty that Australia's reputation in the Japanese market as a major source of LNG continues to go from strength to strength.

"In 2007, Australia and Japan will celebrate the 50th anniversary of the Australia-Japan Commerce Agreement, which laid the foundation for what has become an excellent political and trade relationship with Japan," Mr Vaile said.

Toho Gas is Japan's third-largest utility company, with around 13 million customers. The Company's business is centred on the industrial centre of Nagoya. In 1977, Toho Gas was the first company to introduce LNG to central Japan.

The NWS LNG-Toho Gas agreement follows a series of recent deals between Australian LNG projects and major Japanese utilities. Over the past eight months, Australian producers have announced contracts to sell up to 8 million tonnes per annum of LNG to Japan over the next 25 years.

LNG is Australia's second-largest export to Japan, with sales in 2005 worth up to A$4 billion.

Contact: Mr Vaile's Office 02 6277 7420, Departmental 02 6261 1555