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The Woodside building in Perth CBD. Picture: Simon Santi/The West Australian.
The Woodside building in Perth CBD. Picture: Simon Santi/The West Australian.

UPDATE 12.10pm: Minority Browse partner Japan Australia LNG (MIMI Browse) has terminated a long-term sales and purchase agreement with Woodside for around 1.5 million tonnes of LNG a year.

The agreement was conditional on a final investment decision on the Browse LNG project off the Kimberley coast being made before December 31, 2013.

But Woodside's decision last year to abandon plans for onshore processing in favour of floating LNG technology means a final investment decision has been pushed back.

MIMI told Woodside today the sales and purchase agreement would not be renewed.

However Woodside said a separate agreement between the two parties to jointly market "co-mingled" LNG to the Asian market, primarily to Japanese customers, would not be terminated.

"Woodside and MIMI continue working actively on marketing of co-mingled LNG volumes in the Japanese market," Woodside said in a statement.

"In addition, Woodside remains in ongoing discussions with other regional customers regarding potential sales from its portfolio of Australian LNG developments, including Browse."

Woodside signed a $2 billion deal with MIMI Browse in May 2012 which gave the Japanese company a 16 per cent stake in the East Browse JV and an 8 per cent interest in the West Browse project.

The other JV partners involved in Browse are PetroChina, BP Developments Australia and Shell Development Australia.

The consortium is exploring a Basis of Design for a floating LNG development concept for Browse, in line with a plan to sanction development in 2015.

Woodside shares were off 25 cents to $38.65 at 12.15pm.