"why would both partys sign so long term??????"
From the customer's point of view, there is a projected LNG regional supply shortfall 2010-2012.
From Woodside's point of view, contracts are essential for making the Final Investment Decisions for their expansion projects. These are expensive and long lead-time projects. They need committed demand.
Obviously Woodside's cost of production and their objective to make a good return out of the projects is balanced against the customers alternative supplier options (in this instance, not many)
forecast earnings, page-6
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