Kansai Elec., Tokyo Gas to Obtain Stakes in Aussie LNG Project

Tokyo, July 27 (Jiji Press)–Kansai Electric Power Co. and Tokyo Gas Co. said Friday they will each obtain a 5 pct stake in an Australian offshore liquefied natural gas project undertaken by Woodside Energy Ltd. of Australia.

The two firms will acquire stakes in a mining area that includes the Pluto gas field, which lies 190 kilometers northwest of Karratha in Western Australia.

The Pluto gas field alone is estimated to contain 4.1 trillion cubic feet of dry gas, according to Woodside Energy. The field is 100 pct owned by the Australian energy firm.

After commercial production starts sometime between October 2010 and March 2011, Kansai Electric will purchase an annual 1.75 million to 2 million tons of LNG and Tokyo Gas an annual 1.5 million to 1.75 million tons, over a period of 15 years.

In addition to their investments in the project, the two firms will bear 60 billion yen each for constructing facilities for gas production.

It will be the first time for Kansai Electric, which supplies electricity to Osaka and surrounding areas, to take a stake in an LNG project.

The company will set up an LNG transport firm in August together with shipping firms Mitsui O.S.K. Lines Ltd. and Iino Kaiun Kaisha Ltd. . An LNG tanker to be owned by the joint venture firm will be completed in May 2008.END

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