Darwin, Tokyo Electric and Tokyo Gas sign HOA for Timor Sea Project
Darwin signed a heads of agreement (HOA) with Tokyo Electric Power Co. Inc. and Tokyo Gas Co. Ltd. detailing terms for the sale of 3 million tons/yr of liquefied natural gas (LNG). The agreement covers a 17-yr period, with the first cargo scheduled for January 2006. The LNG will be sold on a free-on-board basis.
The HOA paves the way for Phillips' plan to develop an LNG facility at Wickham Point near Darwin, Australia, using the company's proven optimized cascade LNG process.
The fully integrated development of Bayu-Undan, including the pipeline and LNG plant, is estimated to cost roughly $3 billion.