Signs China LNG Agreements
BHP Billiton Limited
18 October 2002
BHP Billiton Limited is issuing this announcement to fulfil disclosure
obligations arising from its secondary listing on the London Stock Exchange.
The text of this release is identical to that issued by BHP Billiton Plc
earlier.
Date 18 October 2002
Number 53/02
BHP BILLITON SIGNS CHINA LNG SALES AND PURCHASE AGREEMENTS
BHP Billiton, together with the other participants in the North West Shelf
Venture, today signed Sales and Purchase Agreements with the companies
comprising the Guangdong LNG Project for the purchase and supply of liquefied
natural gas (LNG) from the North West Shelf (NWS) in Western Australia.
The agreements were signed by the six NWS LNG Sellers and cover the supply of
approximately 3.3 million tonnes of LNG per year to Phase One of the Guangdong
LNG Project for a period of 25 years starting in late 2005. The contract is
worth between A$20 billion and A$25 billion.
The Guangdong LNG project is China's first LNG project and involves the
construction of an LNG import terminal and high-pressure gas pipeline in two
phases.
President and CEO BHP Billiton Petroleum Philip Aiken, the North West Shelf
Owners' Representative for the deal, said at the signing ceremony today in
Canberra that he was delighted to participate in such an historic event.
'The occasion marks the beginning of the North West Shelf's commercial
relationship with the Chinese LNG project proponents and a new phase of supply
of North West Shelf LNG to China,' Mr Aiken said.
'The agreements are very important for the overall bilateral relationship
between China and Australia, reinforcing Australia's position as a competitive,
reliable and secure supplier of LNG to the Asia Pacific region.
Mr Aiken also believes that the deal is significant for the future of BHP
Billiton to supply into the Chinese market. 'Whether it's iron ore or coal or
LNG, the Chinese market is huge and growing, and having a strong position early
is very important.'
'We look forward to working with the proponents of the Project and hope that we
can find new opportunities to extend our working relationship in the future.'
BHP Billiton Chairman Don Argus praised Mr Aiken who, as North West Shelf
Owners' Representative for the deal, acted as pivotal link between the
commercial negotiating teams and the political view; the Commonwealth and
Western Australian Governments; the Department of Foreign Affairs and Trade; and
the Project's marketing agent Australia LNG for their significant roles in
bringing the deal to fruition.
Mr Argus said: 'The fact that we had the unshakable support of the Government
was very important. In particular I would like to thank the Prime Minister John
Howard, the Western Australian Premier Geoff Gallop and former WA Premier
Richard Court for their sustained support and assistance. '
The companies comprising the Guangdong LNG project are:
China National Offshore Oil Company
Shenzhen Investment Holding Corporation
Guangdong Yuedian Power Assets Managing Co. Ltd
Guangzhou Gas Company
The Hong Kong & China Gas Company Limited
Hong Kong Electric Holdings Limited
Foshan Municipal Gas General Company
Dongguang Fuel Industrial General Company
BP Global Investments Limited
The NWS Venture is currently constructing a fourth LNG processing train at the
Venture's gas processing facilities on the Burrup Peninsula, Western Australia,
and a second trunkline from the North Rankin A Platform to shore. First LNG from
the fourth train is scheduled for mid-2004.
Further infrastructure investments are now being assessed to supply future
opportunities and contractual obligations.
BHP Billiton has a 16.67 per cent equity interest in the North West Shelf
Project.
****
Further news and information can be found on our Internet site: www.bhpbilliton.com
Australia United Kingdom
Andrew Nairn, Investor Relations Mark Lidiard, Investor & Media Relations
Tel: + 61 3 9609 3952 Mobile: +61 408 313 259 Tel: +44 20 7747 3956
email: Andrew.W.Nairn@bhpbilliton.com email: Mark.Lidiard@bhpbilliton.com
Mandy Frostick, Media Relations South Africa
Tel: +61 3 9609 4157 Mobile: +61 419 546 245 Michael Campbell, Investor & Media Relations
email: Mandy.J.Frostick@bhpbilliton.com Tel: +27 11 376 3360 Mobile: +27 82 458 2587
email: Michael.J.Campbell@bhpbilliton.com
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Francis McAllister, Investor Relations
Tel: +1 713 961 8625 Mobile: +1 713 480 3699
email: Francis.R.McAllister@bhpbilliton.com
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