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Monday, 08 September, 2008, 17:50 GMT | more prices >>

Woodside warns of Karratha cargo delays



By Upstream staff 

Woodside Petroleum, Australia's second-largest oil and gas producer, said it may have to delay deliveries of liquefied natural gas cargoes, after an electrical outage last week halted output at its Karratha gas plant in Western Australia.

LNG operations at Karratha restarted on Sunday after they were halted last Wednesday, and production is being progressively ramped up, Reuters reported Woodside spokeswoman Kirsten Stoney said today.

"We are working closely with customers to agree to a revised delivery schedule and minimise any impact. We anticipate there will be a deferral of LNG output as a result of the outage but its too early to determine the exact volume," Stoney said.

The Karratha gas plant is part of the North West Shelf venture, the country's largest LNG project, and provides over 60% of the state's gas supply.

Domestic gas production resumed on Friday.

Woodside's Karratha plant produces about 12 million tonnes of LNG each year and delivers about 50 LNG cargoes each quarter to customers in Japan, South Korea and China.

Stoney said the shutdown would not materially affect Woodside's 2008 production forecast.

The Perth-based company in November estimated 2008 production to be between 80 million and 86 million barrels of oil equivalent.

Shares in Woodside were down 0.6% at A$51.05 by 0043 GMT, compared with a 0.3% decline in the broader S&P/ASX 200 index.

The six equal partners in the North West Shelf joint venture are Woodside, BHP Billiton, Chevron, BP, Japan Australia LNG (MiMi) Pty - a joint-venture of Mitsubishi and Mitsui & Company and Shell, which also holds a 34% stake in Woodside itself.


Tuesday, 08 January, 2008, 01:47 GMT  | last updated: Tuesday, 08 January, 2008, 01:47 GMT

Delivery delays possible: at Woodside's Karratha gas plant
 

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