PetroChina Abandons LNG Supply from Woodside Petroleum

The expiration of a USD 40.05 billion LNG (liquefied natural gas) supply agreement inked between PetroChina Co., Ltd. and Woodside Petroleum Ltd. will exert not too much influence on the Beijing-located company's global resources procurement, said insiders.

Woodside Petroleum, as one of Australia's top oil and gas producers, yesterday ascribed the cooperation suspension to both sides' price dispute and the international LNG price reduction.

However, an insider from PetroChina gave a denial and pointed out that its LNG projects had been affected by the deferment of a gas resources project of Woodside Petroleum. Because of too much operation pressure resulted from the gas price inversion, the Chinese company had to seek other suitable LNG suppliers from the 2009-end.

When its deal with Woodside Petroleum aborted, PetroChina entered into a series of LNG purchase agreements with Shell, Exxon Mobil, and so on, and the involved gas resources are mostly dotted in Qatar and Australia. It is aimed at the scare buying of overseas LNG sources at a relatively low price.