Woodside lines up LNG supply deal with Uniper

Australia’s Woodside said its unit, Woodside Energy Trading Singapore has signed a heads of agreement (HOA) with Uniper Global Commodities (Uniper) for the supply of LNG from Woodside’s portfolio for a period of 13 years commencing in 2021.

The quantity of LNG to be supplied will initially be up to 0.5 million tonnes per annum (Mtpa), increasing to approximately 1 Mtpa from 2025, Woodside said in its statement.

Woodside CEO Peter Coleman said the HOA builds on previous LNG supply arrangements between Woodside and Uniper.

He added that the deal is also another strong signal of market support for Woodside’s 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 the proposed Burrup Hub.

“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,” said Uniper CEO Keith Martin.

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