Woodside Initials Domestic Gas Sale
Australian major Woodside Energy has found a buyer interested in gas from its Scarborough development, in which it recently increased its stake, the company said April 26.
The Perth-based producer has entered into a memorandum of understanding with Perdaman Chemicals and Fertilisers for the supply of approximately 125 terajoules (3.3mn m3) per day from the early 2020s for a period of between 20 and 25 years, Woodside said. The company and Perdaman have committed to negotiate a gas sale and purchase agreement consistent with the terms of the MoU this year, Woodside said.
It completed the acquisition of ExxonMobil’s stake in the Scarborough gas field March 29 which took its interest from 25% to 75%. The move saw Woodside become the operator of the asset after equity holder BHP agreed to the sale. Woodside’s intention is to tie the Scarborough field development into its Pluto LNG export facility.
Based in Western Australia, Perdaman specialises in the production of urea, a commonly traded nitrogenous fertiliser. It is part of the multi-national Perdaman Group.