Japan Australia LNG (MIMI Browse) has terminated a sales and purchase agreement for around 1.5 million tonnes of LNG a year from Woodside's proposed Browse LNG Development.
The cessation of the agreement comes following Woodside's decision not to proceed with an onshore development facility. Instead, Woodside entered into a basis of design for a floating LNG (FLNG) development concept.
The SPA was conditional upon a final investment decision on Browse being taken by 31 December 2013. As a result of the Browse joint venture participants deciding not to proceed with the onshore facility, both parties "recognise that this condition will not be satisfied".
Woodside and MMI entered into the SPA following Woodside's sale of equity into Browse in May 2012. The SPA was forged alongside another agreement to jointly market co-mingled LNG to the Asian market, primarily to Japanese customers.
According to Woodside, this joint agreement has not been terminated and Woodside and MIMI will "continue working actively on the marketing of co-mingled LNG volumes in the Japanese market."
Disclosure: The Baird family, publishers of Baird Maritime, own shares of Woodside through its superannuation fund.
{WISroYQ symbol='WPL.AX'}
