Woodside Energy Trading Singapore Pte Ltd (Woodside) and Uniper Global Commodities (Uniper) have agreed to double the binding long-term sale and purchase agreement (SPA) announced in December, 2019.
The initial LNG supply, commencing this year, will now be up to 1 mill tonnes per annum, increasing to around 2 mill tonnes from 2026.
Much of the LNG supply from 2025 is on condition that a final investment decision (FID) is taken on the development of the Scarborough gas resource offshore Western Australia.
The SPA’s term of 13 years is unchanged.
Woodside and Uniper have also agreed to collaborate on potential carbon-neutral LNG, including enhanced carbon accounting, and future hydrogen opportunities.
Woodside CEO, Peter Coleman said:“Scarborough is a globally competitive, capital efficient LNG development, which supports the de-carbonisation ambitions of our customers. We expect the timing to be right for final investment decisions on Scarborough and Pluto Train 2 in the second half of this year.
“This agreement with Uniper highlights the strong market demand we are seeing for Scarborough LNG as customers consider their energy requirements from the second half of this decade. We have now secured long-term customers for over 40% of our expected Scarborough equity production.
“Woodside and Uniper share a commitment to innovatively deliver a lower-carbon future. Our agreement with Uniper strengthens our common goal of supplying affordable, clean energy to customers in Asia and beyond,” he said.
Uniper CEO, Andreas Schierenbeck, added:“With this agreement, Uniper continues its path to implement its strategy of growth in Asia, trading in cleaner fuels and de-carbonisation. We are also pleased to strengthen our great relationship with Woodside with the additional volume agreed for this contract.”