Production
of hydrocarbons from the Bayu Undan field, which is located
in the Joint Petroleum Development Area (JPDA), is subject
to terms of a treaty between the nations of Australia
and East Timor. Among the terms, the parties agree to
develop the commercial hydrocarbons, contribute substantial
income to the region by way of royalties, taxes, and demand
for local goods and services, provide increased employment
while diversifying the economic base of Darwin, and generate
export earnings for Australia.
Current
Gas Production:
0.5 billion
cubic feet per day (5.2 billion cubic meters per year)
Byproducts:
The offshore
facility, currently produces more than 100,000 barrels
of NGLs daily
Pipeline
Transport:
The natural
gas is sent through a 502-km subsea pipeline to the Darwin
LNG plant.
Production
Sharing Agreements:
The PSA is
governed by the JPDA treaty between Australia and East
Timor (see above)
Plant
Utilization Rate (2006):
67%
Liquefaction
Plant Business Model:
N/A
Distance
to Primary Market (n. miles):
3,100
Estimated
Transport Cost ($70,000/day):
$0.40/MMBtu
Estimated plant capital cost:
US$1.1 billion
(Au$1.4 billion)
Earliest
Uncommitted Cargos:
Train 1 dependent
on TGC and TEPCO demands. Trains 2 and 3, 2011.
Spot
Cargoes & Prices:
None thus far
Import Company
Import Terminal
Contract Length Years
Start Year
Quantity (mtpa)
Contract Status
Import Country
Export Country
Export Terminal
Export Company
Stage of Development (Future Contract)
Tokyo Electric Power Company
Sodegaura/ Negishi
17
2006
2
Existing
Japan
Australia
Darwin LNG
ConocoPhillips
Sale and Purchase Agreement
Tokyo Gas Company
Sodegaura/ Negishi
17
2006
1
Existing
Japan
Australia
Darwin LNG
ConocoPhillips
Sale and Purchase Agreement
Market Notes
With the resurgence of the Japanese economy, Japan has been demanding more gas. In the winter of 2006/2007, Japan has been paying some of the highest prices worldwide for LNG, drawing spot cargoes as far away as Trinidad and Tobago.
