BHP Billiton, together with the other participants in the North West Shelf
(NWS) Venture, today signed a Memorandum of Understanding with Methanex
Australia Pty Ltd for the supply of gas to a proposed methanol plant on the
Burrup Peninsula, Western Australia.
The agreement was signed by the six NWS Venture participants and involves
the supply of 200 terajoules of gas a day over a 25 year period from 2005.
Under the agreement, there is also a provision for the NWS Venture to supply
a further 200 terajoules a day should Methanex proceed with plans to double
production.
It is intended to convert the Memorandum of Understanding into a gas sales
agreement by the end of this year, subject to approval by the BHP Billiton
Board.
The proposed Burrup Peninsula plant will be supplied with Australian
Feedstock Gas(TM) from the NWS Venture's existing facilities at Karratha.
Australian Feedstock Gas(TM) is a medium pressure industrial quality natural
gas used specifically for projects that require large quantities of gas for
downstream processing.
Methanex Australia Pty Ltd is a subsidiary of Methanex Corporation of
Canada, which supplies about a quarter of the world's methanol market and
more than 30 per cent of the Asia-Pacific market.
BHP Billiton's equity in the North West Shelf Venture is 16.67 per cent. The
other participants are Woodside Energy Ltd (operator - 16.67 per cent); BP
Developments Australia Pty Ltd (16.67 per cent); Chevron Australia Pty Ltd
(16.67 per cent); Japan Australia LNG (MIMI) Pty Ltd (16.67 per cent); and
Shell Development (Australia) Proprietary Limited (16.67 per cent).
Further news and information can be found on our Internet site:
www.bhpbilliton.com
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