Photo: Courtesy of Woodside

Woodside, RWE ink seven-year LNG supply deal

Australian LNG major Woodside, through its unit Woodside Energy Trading Singapore, has signed a 7-year LNG supply deal with RWE Supply & Trading.

Woodside, RWE ink seven-year LNG supply deal
Courtesy of Woodside

Woodside noted it will deliver LNG from its global portfolio for a 7-year term starting in 2025.

The quantity of LNG to be supplied under the SPA is approximately 0.84 million tonnes per annum.

Woodside executive vice president development and marketing Meg O’Neill said the signing of the SPA with RWE was further evidence of the strong market demand for LNG in the second half of this decade.

“Customers are increasingly seeking to secure new energy supplies in a timeframe which supports the development of our Scarborough offshore gas resource and the expansion of the Pluto facility with the addition of a second LNG production train”, she said

She further noted that the deal also provides the opportunity for Woodside and RWE to explore the potential for carbon-neutral LNG production and trading.

On the other hand, chief commercial officer origination and gas supply at RWE Supply & Trading Andree Stracke said the transaction demonstrated RWE’s ongoing commitment to expanding its global LNG portfolio.

In October 2020, Woodside and RWE also signed a memorandum of understanding (MOU) to discuss mutually beneficial hydrogen-related opportunities. The MOU supports Woodside’s plans to develop such
opportunities.

Hydrogen is expected to play an increasingly important role in the future global energy mix as a carbon-neutral fuel. RWE is progressing approximately 30 hydrogen projects, mostly located in Europe.