Woodside makes 7-year LNG supply deal

Woodside Energy Trading Singapore Pte Ltd has signed a sales and purchase agreement with German trader RWE Supply and Trading GmbH for the supply of 0.84 million tonnes/year of LNG over seven years beginning in 2025.

The LNG will come from Woodside’s global portfolio and does not rely on a final investment decision on any of the company’s current projects.

Woodside said the deal builds on a relationship with RWE developed through existing mid-term and spot market business in Asia-Pacific and the Atlantic basin.

Executive vice-president of development and marketing, Meg O’Neill, pointed to the deal as evidence that customers are seeking to secure new energy supplies in a timeframe which supports Woodside’s proposed development of the Scarborough gas reserves on the Exmouth Plateau offshore Western Australia along with the addition of a second LNG train at the Pluto facilities on the Burrup Peninsula.

Woodside is targeting a final investment decision on those projects in this year’s second half.

In October, Woodside and RWE signed a memorandum of understanding to discuss mutually beneficial hydrogen-related opportunities.

Woodside believes hydrogen will play an increasingly important role in the future global energy mix as a carbon-neutral fuel, while RWE is already progressing about 30 hydrogen projects, mostly in Europe.

Source: Oil & Gas Journal