INPEX and Total sign sales contract with Taiwan for LNG from Australia

Ichthys liquefied natural gas project partners have written up further sales agreements, including the first binding sales contract with Taiwan, opening up a new market for exports.

Japanese company INPEX and French company Total signed agreements with Taiwan's CPC Corporation and Japanese companies Chubu Electric Power and Toho Gas yesterday in Melbourne.

This sales agreement builds on offtake agreements totalling four million tonnes a year involving five major Japanese gas utilities.

Martin Ferguson, Resources Minister, said that yesterday's announcement adds another dimension, with the first binding long-term sales contract for the supply of Australian LNG to Taiwan.

"This is a major step forward for the Australian LNG industry in opening up a new market," he said.

"It will complement our existing and highly valued customers in Asia, Japan in particular."

Mr Ferguson went on to say that it was important to increase the levels of safe, dependable energy to promote economic growth in Asia and contribute to a reduction in greenhouse gas emissions.

"Today, we add Taiwan to the list of countries that will be powering their economies with clean, safe and reliable Australian LNG."

Japan is Australia's largest and most valuable LNG trading partne as it accounts for about 70 per cent of Australian LNG exports.

Chubu Electric and Toho gas have contracts with projects in the North West Shelf and Gorgon, off Western Australia, supplying gas to more than 18 million customers in Japan.

Ichthys is the single biggest investment in an Australian resources project by a Japanese company. It is also the first LNG project operated by a Japanese company in the world.

Alongside Total it will boost Australia's LNG export capacity to more than 80 million tonnes a year, with the potential to boost Australia to the position of the world's largest LNG exporter.

"I look forward to an announcement of a final investment decision from the Ichthys joint venture to move this project to the development stage," Mr Ferguson said.