Browse development a vote for gas project

• State Government welcomes MIMI's involvement in the Browse project

Premier and State Development Minister Colin Barnett has welcomed Woodside's announcement today that it has accepted an offer from Japan Australia LNG (MIMI Browse) Pty Ltd (MIMI) to acquire a 14.7 per cent interest in the Browse LNG Precinct.

"This strong commitment by Japanese industry, which also includes an off-take agreement to purchase about 1.5 million tonnes of LNG a year, is a major boost for the Browse project," Mr Barnett said.

"With this deal and a previous deal, Woodside has sold down its overall share of the Browse project from 50 per cent to 31 per cent.  This enables Woodside to remain operator of the development with a more manageable share for the Australian company to be able to finance.  The $2billion revenue from the equity sale will also be of benefit."

The Premier said MIMI had played a significant long-term role in the development of the North West Shelf project as both an investor and marketer of North West Shelf LNG, providing access to Japanese LNG markets.

"The State is very supportive of  MIMI playing a similar role in the Browse project," he said.

Mr Barnett said there could be some further adjustment of project equity shares before the joint venture structure was finally settled.

"There is no doubt that this announcement is a vote of confidence and a major step forward for the Browse project and the development of a gas precinct at James Price Point," he said.

      Fact File

• The sale involves MIMI taking 16% interest in the East Browse joint venture and 8% interest in the West Browse joint venture

• This would give MIMI an estimated 14.7% interest in the Browse development on an assumed utility basis

Premier's office - 6552 5000