Woodside of Australia said that it has signed a sales and purchase agreement (SPA) with Korea Gas Corporation (KOGAS) for a maximum supply of up to approximately 2.2 million tonnes of liquefied natural gas (LNG) over a three year period commencing in April 2014.
LNG delivered to KOGAS under the SPA will primarily be sourced from previously uncommitted volumes from the Woodside-operated Pluto LNG Plant.
Existing Pluto LNG agreements with foundation buyers provide for LNG delivery of an ex-ship equivalent of approximately 3.25 million tonnes per annum (mtpa). This comprises Kansai Electric 1.75mtpa and Tokyo Gas 1.5 mtpa.
The previously stated delivery to foundation buyers of up to 3.75 mtpa, which includes foundation buyer options of up to 0.5 mtpa, no longer applies, Woodside said in a statement.
Woodside CEO Peter Coleman welcomed this agreement with KOGAS and noted it demonstrated Woodside’s ability to supply LNG using increasingly flexible and innovative arrangements.
Press Release, February 28, 2014; Image: Woodside