BHP Signs LNG Letter

BHP Limited
16 January 2001


BHP SIGNS LNG LETTER OF INTENT

BHP Limited (BHP), together with other participants in the North West Shelf
Venture, today announced  a Letter of Intent (LOI) with Osaka Gas Co. Ltd of
Japan for the sale and purchase of liquefied natural gas (LNG) from the North
West Shelf (NWS) in Western Australia.

The agreement was signed by the six NWS LNG Sellers and covers the supply of
one million tonnes of LNG per annum (mtpa) for a period of 30 years starting
in mid 2004 conditional on negotiation of a complete sales and purchase
agreement that the parties aim to finalise by the end of March 2001. 

President BHP Petroleum Philip Aiken said the agreement with Osaka Gas, an
existing customer of the NWS LNG Sellers, represented a further important step
in the finalisation of the planned $2.4 billion expansion of the North West
Shelf LNG Project covering liquefaction facilities and a 42 inch trunkline. 

'The NWS is a key component in BHP's gas strategy and expansion of the
existing production facilities will realise further shareholder value from the
large gas resource,' he said.

The LOI with Osaka Gas follows the signing in September 2000 of LOIs between
the NWS LNG Sellers and Tokyo Gas Co. Ltd and Toho Gas Co. Ltd of Japan for
the supply of LNG for a period of 25 years, starting in 2004 and building to a
volume of one mtpa of LNG by 2006. 

It is anticipated that further LOIs will be signed with several other
customers in the coming months and that approval for a final investment
decision for a fourth LNG train with a capacity of up to 4.2 million tonnes
per annum will be sought in the first part of calendar year 2001.

BHP's equity in the North West Shelf Project is 16.67 percent. The other
participants are Woodside Energy Ltd (operator - 16.67 percent); BP
Developments Australia Pty Ltd (16.67 percent); Chevron Australia Pty Ltd
(16.67 percent); Japan Australia LNG (MIMI) Pty Ltd (16.67 percent); and Shell
Development (Australia) Proprietary Limited (16.67 percent).

Further information can be found on our Internet site: http://www.bhp.com 

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Ph:  61 3 9609 3709                                                 
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