Natural gas producer Woodside Energy has signed a 13-year heads of agreement (HOA) with Germany-based energy firm Uniper to supply liquefied natural gas (LNG).
Under the HOA, Woodside will supply LNG from its portfolio during the agreed period, which is expected to commence in 2021.
The company will initially supply up to 0.5Mtpa of LNG. This will increase to approximately 1Mtpa from 2025.
Woodside CEO Peter Coleman said: “This HOA deepens our relationship with Uniper, an international energy company and a leading player in global gas markets.
“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.”
Coleman also noted that the deal is part of Woodside’s previous LNG supply agreements with Uniper.
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By GlobalDataUniper CEO Keith Martin said: “Uniper is committed to growing its LNG Trading business in both the Atlantic and Pacific basins. 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 is subject to the negotiation and execution of a sales and purchase agreement and obtaining all necessary approvals, regarding supply from 2025.
The agreement is also linked to Woodside making a final investment decision on the Scarborough project in Western Australia.
In April, Woodside Petroleum signed a ten-year HOA with China’s ENN Group towards the supply of LNG, under which Woodside will supply 1Mtpa of LNG to ENN from 2025.
In March, the company also invested in two Western Australian online LNG trading platforms that seek to increase price transparency, efficiency and compliance in LNG markets.