Woodside loses sales agreement with Japanese consortium

|About: Woodside Petroleum Ltd. (WOPEF)|By:, SA News Editor

Woodside Petroleum (WOPEF, WOPEY) says the Mitsui-Mitsubishi joint venture has scrapped a deal to buy natural gas from Woodside's Browse development after at least two years of delays.

The Japan-Australia LNG venture had agreed in 2012 to buy ~1.5M metric tons of liquefied natural gas each year from Browse, part of a $2B deal that gave the consortium 15% of the project.

Woodside and its partners - including Shell (RDS.A, RDS.B) and BP - abandoned plans for a $40B onshore LNG development because of cost, and are now considering processing natural gas at sea but likely won't make a decision until H2 2015.