Woodside Petroleum has signed a liquefied natural gas key terms agreement with CPC Corporation Taiwan for the potential sale of two to three million tonnes per annum of liquefied natural gas that is targeted to come from the Woodside-operated Browse LNG Development, for a period of 15 to 20 years.

The key terms agreement is a preliminary agreement between Woodside and CPC. It agrees the key commercial parameters normally included in a sale and purchase agreement, including liquefied natural gas (LNG) price. It also facilitates discussions between Woodside and CPC in relation to the potential sale of LNG from Woodside’s other proposed Australian LNG developments.

The parties will negotiate to conclude an LNG supply agreement based on the key terms agreement. Supply from the Browse LNG Development is targeted to commence during the period 2013 to 2015. The agreement is subject to conditions including a final investment decision and the receipt of relevant government approvals.

Don Voelte, CEO of Woodside, said that the agreement recognized the quality of Woodside’s Australian LNG portfolio and emphasized the company’s position as an LNG supplier of choice in the Asia Pacific region.