Osaka Gas to Buy 5% Stake in Browse LNG Project
Osaka Gas has agreed to acquire a 5% interest in the Browse gas project offshore Western Australia from BP Developments Australia, expanding its exposure to Australian LNG and upstream natural gas.
What Readers Should Know
- Osaka Gas will acquire a 5% interest in the Browse project from BP Developments Australia.
- The acquisition remains subject to regulatory, joint-venture and other approvals.
- Browse is currently in the Pre-FEED stage and is progressing toward front-end engineering and design.
- The project is planned to produce about 11 million tonnes of LNG per year.
- Osaka Gas expects its 5% share to provide about 550,000 tonnes of LNG annually.
- The project design includes carbon capture and storage.
MONTREAL (Oil Monster): Osaka Gas has reached an agreement to acquire a 5% interest in the Browse gas project offshore Western Australia from BP Developments Australia Pty Ltd, a move expected to expand the Japanese utility's Australian LNG portfolio.
Osaka Gas to Acquire 5% Browse Interest
The transaction will be carried out through Osaka Gas Browse Pty Ltd, which is backed by Osaka Gas Australia Pty Ltd and the Japan Organization for Metals and Energy Security, or JOGMEC.
The acquisition remains subject to regulatory approvals, consent from Browse joint-venture participants and other applicable conditions.
Browse Project Covers Three Offshore Gas Fields
Operated by Woodside Energy, Browse comprises the Brecknock, Calliance and Torosa gas fields offshore Western Australia.
The project is currently in the pre-front-end engineering and design, or Pre-FEED, stage and is progressing toward FEED. The development is planned around existing North West Shelf LNG infrastructure in Western Australia's Pilbara region.
The proposed design also includes carbon capture and storage, with carbon dioxide contained in the reservoir gas intended to be captured and stored in geological formations.
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Browse Could Produce About 11 Mtpa of LNG
Browse is planned to produce approximately 11 million tonnes per annum of LNG using existing North West Shelf liquefaction facilities.
Based on its proposed 5% interest, Osaka Gas expects to receive approximately 550,000 tonnes of LNG per year, along with associated LPG and domestic natural gas volumes.
JOGMEC said the majority of Osaka Gas's expected LNG volumes are planned to be imported directly into Japan, while part of the gas produced by the project is also expected to supply Australia's domestic market.
Deal Strengthens Osaka Gas LNG Supply Position
Osaka Gas said the acquisition is expected to strengthen its long-term LNG procurement portfolio while supporting energy security in both Japan and Australia.
Osaka Gas President and CEO Masataka Fujiwara said the transaction would deepen the company's strategic relationship with BP and strengthen cooperation with Woodside and the other Browse joint-venture participants.
Osaka Gas has invested in Australian natural gas projects since establishing Osaka Gas Australia in 2000 and has continued to expand its upstream and LNG interests in the country.