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    Woodside, Commonwealth LNG sign LNG pact

Summary

The heads of agreement contemplates the purchase by Woodside of 2mn mt/year of LNG over a period of 20 years,

by: Shardul Sharma

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Woodside, Commonwealth LNG sign LNG pact

Australia's Woodside has signed a heads of agreement (HOA) with Commonwealth LNG to negotiate a sale and purchase agreement for the supply of LNG from the proposed 8.4mn metric tons/year Commonwealth LNG development in Louisiana, the company said on January 19.

The HOA contemplates the purchase by Woodside of 2mn mt/year of LNG over a period of 20 years, scheduled to begin in Q2 2026. Woodside’s offtake obligation can be reduced or even eliminated as Commonwealth achieves increasing thresholds of offtake commitments from other buyers. Woodside would also have an option to purchase an additional 0.5mn mt/yr of LNG.

The HOA is non-binding and also conditional upon the negotiation and execution of a fully termed LNG sale and purchase agreement, all necessary approvals being obtained and a final investment decision on the proposed Commonwealth LNG development.