(WO) — Osaka Gas has agreed to acquire a 5% interest in the Browse LNG project offshore Western Australia from BP Developments Australia, expanding the Japanese company’s exposure to upstream natural gas and LNG development in Australia.
Image: Osaka Gas
The interest will be held through Osaka Gas Browse Pty Ltd. Completion of the transaction remains subject to regulatory and joint venture approvals and other customary conditions. Financial terms were not disclosed.
The Woodside-operated Browse project is progressing toward front-end engineering and design (FEED) and would develop the Brecknock, Calliance and Torosa gas fields offshore Western Australia.
Browse has the potential to produce approximately 11 MMtpa of LNG at plateau using existing North West Shelf infrastructure in Western Australia’s Pilbara region. The project design also incorporates carbon capture and storage (CCS).
Based on its proposed 5% interest, Osaka Gas expects to receive approximately 550,000 tonnes per year of LNG, as well as associated LPG and domestic natural gas production.
Osaka Gas Browse will be jointly funded by wholly owned subsidiary Osaka Gas Australia and the Japan Organization for Metals and Energy Security (JOGMEC). Osaka Gas is also discussing the application of a JOGMEC program introduced in April aimed at supporting long-term supplies of LNG and other resources.
“This transaction marks an important step toward further strengthening our strategic partnership,” Osaka Gas President and CEO Masataka Fujiwara said. “We look forward to working closely with bp, Woodside and other Browse JV participants to advance the Project.”
Osaka Gas has invested in Australian natural gas projects for more than 25 years through Osaka Gas Australia. The Browse acquisition would further expand its Australian upstream portfolio while strengthening its long-term LNG supply position.
About The Author
