Woodside Petroleum, the Australian LNG plant operator, said at the Gastech 2019 conference in Houston that it had signed a supply agreement with Uniper Global Commodities, a unit of the Germany utility Uniper.
The Australian company said its subsidiary, Woodside Energy Trading Singapore, signed a heads of agreement with Uniper for the supply of LNG from Woodside’s portfolio for a period of 13 years starting in 2021.
The quantity of LNG to be supplied will initially be up to 0.5 million tonnes per annum, increasing to around 1 MTPA from 2025.
Woodside Chief Executive Peter Coleman said the accord signed at Gastech builds on previous LNG supply arrangements between Woodside and Uniper, whose headquarters are in Duesseldorf.
“This HOA deepens our relationship with Uniper, an international energy company and a leading player in global gas markets,” added Coleman.
“It is also another strong signal of market support for our plans to expand the Pluto LNG facility in Western Australia,” explained the CEO.
“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 our proposed Burrup Hub,” stated Coleman.
Uniper Global Commodities Chief Executive Keith Martin said the company was 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,” added Martin.
Woodside said the accord remained conditional on the negotiation and execution of a fully termed LNG sale and purchase agreement a final investment decision on the Scarborough gas and LNG development, including building a second liquefaction Train at the Pluto plant on the Burrup Pensinsula of Western Australia.