PERTH (miningweekly.com) – Australian oil and gas producer Woodside has signed a memorandum of understanding (MoU) with multinational Perdaman to supply gas to the proposed $3.5-billion coal-to-urea plant being developed on the Burrup Peninsula.
Under the MoU, Woodside will supply some 125 TJ/d of domestic gas to the proposed two-million-tonne-a-year plant.
CEO Peter Coleman said on Thursday that the MoU demonstrated Woodside’s commitment to finding innovative ways to power the Pilbara and support local manufacturing and exports for Western Australia.
“Supplying domestic gas from our portfolio will underpin a fresh wave of investment in the Pilbara region. Our Burrup Hub projects can support the economic diversification of the region in the years ahead and ensure we are positioned to meet long-term global liquefied natural gas (LNG) demand,” he said.
The gas will be supplied from Woodside’s portfolio of domestic gas, underpinned by the proposed Scarborough development. The supply will start from the early 2020s for a period of between 20 and 25 years.
Woodside and Perdaman have committed to negotiate in good faith a gas sale and purchase agreement consistent with the terms of the MoU.