Jan 19, 2021 (MarketLine via COMTEX) —
Woodside Energy Trading Singapore (Woodside) has revised the long-term sale and purchase agreement (SPA) to double the volume of LNG it supplies to GermanyaEUR(TM)s Uniper Global Commodities.
As per the initial 13-year SPA signed in December 2019, Woodside is required to agree to supply up to 500,000 tonnes per annum of LNG to Uniper starting 2021, and increase the supply to approximately one million tonnes per annum (Mtpa) from 2025.
However, the amended 13-year SPA requires Woodside to supply up to one Mtpa of LNG, starting this year, and increase the volume to approximately two Mtpa from 2026.
Woodside said the LNG supply from 2025 will be subject to final investment decision on the Scarborough gas resource development offshore Western Australia.
The Scarborough field is jointly owned by the operator Woodside with 75% stake, while BHP Billiton owns the remaining 25% interest.
Additionally, Woodside and Uniper agreed to work on potential carbon-neutral LNG, including enhanced carbon accounting, and future hydrogen opportunities.
Uniper CEO Andreas Schierenbeck said the deal supported the firm’s decarbonisation plans.
Schierenbeck added: “With this agreement Uniper continues its path to implement its strategy of growth in Asia, trading in cleaner fuels and decarbonisation.”
Woodside CEO Peter Coleman said: “Scarborough is a globally competitive, capital efficient LNG development which supports the decarbonisation ambitions of our customers. We expect the timing to be right for final investment decisions on Scarborough and Pluto Train 2 in the second half of this year.
“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.”
The sale and purchase agreement follows the signing of heads of agreement between Woodside and Uniper in September 2019.
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