SYDNEY, Nov 19 (Reuters) Woodside Petroleum Ltd , Australia's largest oil and gas producer, said on Monday it has signed a liquefied natural gas (LNG) key terms agreement with Taiwan's CPC Corp [CHIP.UL].
Under the agreement, Woodside will sell 2-3 million tonnes of LNG a year from its Browse LNG project off Western Australia for a period of between 15-20 years, the Perth-based company said in a statement.
Woodside's latest LNG deal with state-owned refiner CPC, comes just two months after sealing an agreement to sell 2-3 million tonnes of LNG a year to China's PetroChina Ltd <0857.HK>.
The deals, if finalised, would be the latest in a string of contracts among Asian buyers to snap up long-term supplies of the super-cooled gas, and increase the likelihood of the Browse project going ahead despite surging costs for LNG projects.
''The Browse project joint venturers have not been party to the agreement to this point, however the agreement provides the opportunity for co-mingled sales,'' Woodside said.
Shares in Woodside rose 1.5 percent at .56 at early trade, out-performing the broader market's 0.9 percent gain.
Browse, the larger of Woodside's two planned LNG projects, comprises three major gas discoveries and contains gas resources estimated at 20 trillion cubic feet (570 billion cubic metres). BP , BHP Billiton , Chevron and Shell all have varying stakes in different blocks of Browse, while Woodside has a 50 percent interest in most blocks.
A key terms agreement is a preliminary deal which includes key commercial parameters including LNG price, Woodside said.
REUTERS DKS BST0533