Oil and Gas News

Woodside signs long-term LNG supply deal

Woodside Energy has signed a non-binding agreement with Uniper Global Commodities for the supply of liquefied natural gas (LNG) for 13 years commencing in 2021.

The Perth-based company will initially supply 500,000 tonnes per annum, increasing to approximately one million tonnes from 2025.

Woodside chief executive officer Peter Coleman said the heads of agreement (HOA), signed at Gastech in Houston, built on previous LNG supply arrangements with Uniper.

“This HOA deepens our relationship with Uniper, an international energy company and a leading player in global gas markets,” he said.

“It is also another strong signal of market support for our plans to expand the Pluto LNG facility in Western Australia. The addition of a second LNG production train at Pluto, to be supplied with gas from the Scarborough offshore field development, is a key element of our proposed Burrup Hub.”

Uniper chief executive officer Keith Martin said the latest agreement with Woodside demonstrated the growth of the company.

“Uniper is committed to growing its LNG Trading business in both the Atlantic and Pacific basins,” he said.

“This HOA with Woodside, one of Asia-Pacific’s leading LNG producers, is a further demonstration of the expansion of our portfolio in the region.”

The HOA remains conditional upon the negotiation and execution of a fully termed LNG sale and purchase agreement, obtaining all necessary approvals and, with the respect to supply from 2025, a final investment decision on the Scarborough development offshore Western Australia.

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