Australia’s oil and gas giant Woodside Energy has signed LNG sale and purchase agreements (SPAs) with Uniper.
They call for the supply of 1 mill tonnes per annum of LNG from Louisiana LNG and up to 1 mill tonnes from its global portfolio through Woodside Energy Trading Singapore.
Woodside CEO, Meg O’Neill said these agreements represent another important milestone to move Louisiana LNG towards a final investment decision (FID).
“We are delighted to advance our longstanding relationship with Uniper through these milestone supply agreements. Uniper’s commitment speaks volumes about Woodside’s track record as a trusted LNG provider, built on decades of delivering reliable and flexible supply solutions for our global partners.
“Louisiana LNG is Woodside’s largest growth project. It leverages the robust US gas resource, an outstanding site, best-in-class EPC and technology partners and Woodside’s track record of successful project delivery.
“The addition of Atlantic Basin LNG supply to our established position in the Pacific strengthens Woodside’s portfolio and allows us to tailor contract structures based on various price indices and tenures to better meet our customers’ diverse needs.
“As we continue to progress sell-down opportunities for Louisiana LNG, these agreements reinforce the project’s unique advantages and its economic competitiveness.
“Uniper’s leadership in European energy markets make them an ideal counterparty, and this builds on Woodside’s existing offtake arrangements, underscoring our shared commitment to delivering value for all companies and the economies in which each operate.
“In an environment of increasing demand for dependable sources of LNG, particularly in Europe, we remain focused on delivering reliable energy supply that will benefit our partners and stakeholders for years to come,” she said.
Michael Lewis, Uniper CEO, added, “We are very pleased to secure additional LNG supplies for our customers in Europe from a reliable LNG supplier like Woodside.
“This deal will support our security of supply and flexible generation strategy together with the potential development of additional gas-fired power plants in Germany to complement the renewable build-up. Woodside is one of our biggest LNG suppliers globally with a solid track record of deliveries of LNG to us from their existing projects.
“With this new project in Louisiana, we are further extending the co-operation with Woodside. Long-term LNG contracts like this contribute directly to the competitiveness of European industry. Reliable and cost-effective energy supply is a cornerstone of a strong industrial base, and deals like this help ensure our customers can count on both,” he said.
Louisiana LNG will supply the 1 mill tonnes of LNG on a free-on-board (FOB) basis for up to 13 years from the project’s commercial operations date (COD).
In addition, Woodside Energy Trading Singapore will supply up to 1 mill tonnes on a delivered ex-ship basis (DES) from its global portfolio into Europe commencing with Louisiana LNG’s COD through 2039.
The SPAs are subject to Woodside’s FID on the three train 16.5 mill tonnes per annum foundation development of Louisiana LNG.
Woodside has also appointed Sarah Bairstow, the CEO of Mexico Pacific, to head up the Louisiana LNG project.
Bairstow will join Woodside in early May, as Senior Vice President at Louisiana LNG.
Earlier this month, Woodside had announced it had agreed to sell a 40% stake in Louisiana LNG to US infrastructure investor Stonepeak for $5.7 bill.
Woodside had also said it was in talks with other potential partners to further sell down its holding in Louisiana LNG.
Last year, the company announced the acquisition of US LNG developer Tellurian for $1.2 bill to develop the 27.6 mill tonnes per a year Louisiana LNG project, formerly Driftwood, in four phases.
