Woodside's gas supply deal with Perdaman becomes unconditional
Australia's Woodside Energy on April 26 announced that all conditions relating to its long-term gas sale and purchase agreement (GSPA) signed with Perdaman Chemicals and Fertilisers in 2018 have now been satisfied.
This follows a positive final investment decision by Perdaman on its 2.3mn metric tons/year urea plant near Karratha in the Pilbara region of Western Australia. Pipeline gas sold under the GSPA is for use at the plant.
Supply under the GSPA is for approximately 130 terajoules/day (TJ/day) of gas over a term of 20 years, starting upon commissioning of the plant expected in either 2026 or 2027. Gas will be supplied from Woodside’s portfolio and sourced primarily from the Scarborough project, which is currently under development.
The Scarborough field is located approximately 375 km off the coast of Western Australia and is estimated to contain 11.1 trillion ft3 of dry gas. Development of Scarborough will include the installation of a floating production unit with eight wells drilled in the initial phase and thirteen wells drilled over the life of the Scarborough field. The gas will be transported to Pluto LNG through a new approximately 430 km trunkline. Woodside sanctioned the project in November 2021. Scarborough will add up to 225 TJ/day of new domestic gas supply into Western Australia from 2026, Woodside said.
“Gas is an essential energy source and feedstock for power generation and industry in Western Australia, and we are pleased to continue supporting local manufacturing industries that provide jobs and in this case support food production locally and globally,” Woodside CEO Meg O’Neill said.
The GSPA becoming unconditional follows a memorandum of understanding signed between Woodside and Perdaman in April 2018 and subsequent execution of the GSPA in November of that year.
Perdaman is based in Western Australia and specialises in the production of urea and is part of the multi-national Perdaman Group.