Australian LNG producer Woodside has signed a heads of agreement with Uniper Global Commodities SE for a long-term supply deal which would kick off in 2021.
Under the terms of the HOA, signed on the first morning at Gastech, Woodside will initially supply up to 0.5 million tonnes per annum (Mtpa) of LNG, rising to approximately 1 Mtpa from 2025. The LNG would be supplied from Woodside’s portfolio over a term of 13 years.
The deal was inked at a ceremony at Woodside’s stand in the Gastech exhibition hall by Woodside Executive Vice President Marketing Trading & Shipping Reinhardt Matisons and Uniper Global Commodities SE CEO Keith Martin. Woodside CEO Peter Coleman and Uniper CEO Andreas Schierenbeckalso attended the signing.
Coleman said the HOA built on previous supply arrangements between Woodside and Germany-based Uniper. Last September the two companies signed a first agreement for the supply of up to 0.6 Mtpa of LNG over four years starting in 2019.
“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. 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,” he said.
Woodside’s vision for an LNG production hub on the Burrup Peninsula in Western Australia involves the integration of an expanded Pluto facility with the proposed Browse to North West Shelf project.
“Uniper is committed to growing its LNG trading business in both the Atlantic and Pacific basins,” said Uniper’s Martin. “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 conditional on the negotiation and execution of a fully termed LNG sale and purchase agreement, the obtaining of all necessary approvals and, with respect to supply from 2025, a final investment decision on the Scarborough development.