Woodside faces Asian price squeeze: report

Demand for cheaper gas to put Woodside, Exxon Mobil contracts under pressure.

Export contracts for Australia's new and under-construction liquefied natural gas plants, worth $222 billion worth, are under pressure as Asian customers demand cheaper gas, The Australian reports.

According to the newspaper, competition from the United States and East Africa poses hurdles for Woodside Petroleum's talks over its Pluto project in Western Australia (see Woodside's yield-growth challenge by Tim Treadgold).

And Indian-owned gas company GAIL wants cheaper prices on gas it has agreed to buy from ExxonMobil's Gorgon contracts, according to The Australian.

The call to renegotiate an existing contract will raise concerns about pricing formats embedded in 15- to 20-year LNG contracts, The Australian reports.