Australia’s $40 billion gas deal with China’s PetroChemical expires

According to Financial Times, an agreement between Australia’s Woodside Petroleum and PetroChina to supply liquefied natural gas, estimated to be worth about A$45 billion, expired without final approval. The agreement, which was made in 2007, called for Woodside to supply up to 3 million tons of LNG a year to the Chinese oil and gas group for up to 20 years. The commercial terms of the negotiation between the parties were kept confidential but initial plans to begin gas sales to PetroChina from 2013 were understood to be unfeasible. Woodside said it has entered an agreement with Japanese group Osaka Gas, and is also reportedly in talks with other Asia Pacific LNG customers for potential sales from its portfolio of Australian LNG developments.