Osaka Gas has agreed to acquire a 5% interest in the Browse gas project offshore Western Australia from BP Developments Australia, adding an expected 550,000 tonnes per year of LNG to its procurement portfolio.
The Japanese company entered into a sale and purchase agreement through Osaka Gas Browse, an investee of its wholly owned subsidiary Osaka Gas Australia.
Osaka Gas Australia and the Japan Organization for Metals and Energy Security plan to jointly invest in Osaka Gas Browse. Completion of the acquisition remains subject to regulatory approvals, consent from Browse Joint Venture partners and other conditions.
The acquired interest covers the Brecknock, Calliance and Torosa gas fields in the Browse Basin, where the project is currently at the pre-front-end engineering and design stage.
The project is envisaged to produce about 11 million tonnes of LNG annually using existing liquefaction facilities owned by the North West Shelf Joint Venture. Osaka Gas Browse's 5% interest is expected to provide about 550,000 tonnes per year.
The development concept also includes carbon capture and storage to reduce carbon dioxide emissions, while part of the produced gas is planned to be supplied to Australia's domestic market.
The Western Australian Government has granted Browse ‘Significant Project’ status, recognizing its expected economic contribution and importance to regional energy security.
Osaka Gas is also discussing with JOGMEC the potential application of a new framework announced on April 1 aimed at securing medium- to long-term stable supplies of LNG and other resources.
The partners in the project are operator Woodside Energy, BP and Japan LNG, which is a joint venture between Mitsui and Mitsubishi.