Woodside, Uniper Tweak LNG Deal
Australia’s Woodside has amended an existing agreement with Uniper to increase the supply of LNG from its global portfolio, it said on January 18. The original deal was signed in December 2019.
According to the amended sales and purchase agreement (SPA), the initial supply starting in 2021 is now for a volume of up to 1mn metric tons/year, which is double the previously agreed volume. This will increase to approximately 2mn mt/year starting in 2026.
“The majority of LNG supply from 2025 is conditional upon a final investment decision on the development of the Scarborough gas resource offshore Western Australia. The 13-year term of the SPA is unchanged,” Woodside said.
The companies have also agreed to collaborate on potential carbon-neutral LNG, including enhanced carbon accounting, and future hydrogen opportunities. Woodside CEO Peter Coleman said the expansion of the existing SPA with Uniper demonstrated further progress towards a final investment decision on the Scarborough development.
“We expect the timing to be right for final investment decisions on Scarborough and Pluto Train 2 in the second half of this year,” Coleman said. “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.”
Uniper CEO Andreas Schierenbeck said the agreement supported Uniper’s decarbonisation plans. “With this agreement Uniper continues its path to implement its strategy of growth in Asia, trading in cleaner fuels and decarbonisation. We are also pleased to strengthen our great relationship with Woodside with the additional volume agreed for this contract,” he said.