Woodside signs LNG supply deal

Woodside Petroleum saidit has signed a preliminary agreement to supply liquefied natural gas (LNG) to German utility Uniper for 13 years starting in 2021, contingent on Woodside developing its Scarborough gas project.

Woodside said it would initially supply up to 0.5 million tonnes a year from its portfolio, rising to about 1 million tonnes a year from 2025 if it goes ahead with the Scarborough project off northwestern Australia.

Woodside is looking to develop Scarborough to feed a new 5 million tonnes a year production unit, called a train, at its Pluto LNG plant in Western Australia.

Uniper said the proposed deal was part of its plan to grow its LNG trading business in both the Atlantic and Pacific basins.

Uniper Chief Executive Keith Martin said in a joint statement with Woodside that the preliminary agreement “is a further demonstration of the expansion of our portfolio in the region.”

Woodside is hoping to make a final investment decision on Scarborough next year.

Reporting by Sonali Paul; editing by Jane Wardell

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