Woodside Energy signed a memorandum of understanding (MOU) with Perdaman Chemicals and Fertilisers, part of the Perdaman Group, for the supply of natural gas.
Under the terms of the MOU, Woodside will supply approximately 125 terajoules per day of domestic gas for use in Perdaman’s proposed 2 million ton per annum urea plant on the Burrup Peninsula.
Natural gas will be supplied from Woodside’s portfolio of domestic gas underpinned by the proposed Scarborough development. Supply will commence from the early 2020s for a period of between 20 and 25 years, Woodside said in a statement.
Woodside and Perdaman have committed to negotiate a gas sale and purchase agreement consistent with the terms of the MOU this year.
Woodside CEO Peter Coleman said, “our Burrup Hub projects can support the economic diversification of the region in the years ahead and ensure we are positioned to meet long-term global LNG demand.”