PERTH (miningweekly.com) – ASX-listed Woodside Petroleum has inked a sales and purchase agreement with US-based Cheniere Energy over the Corpus Christi liquefaction project, in Texas.
Under the 20-year agreement, Woodside would purchase some 0.85-million tonnes a year of liquefied natural gas (LNG) from the Corpus Christi project on the start of the second train at the LNG export facility.
The project was planned to include up to three LNG trains with a combined production capacity of 13.5-million tonnes a year.
Woodside CEO Peter Coleman said on Tuesday that the supply agreement complemented the company’s existing portfolio by providing a new product source that diversified Woodside’s LNG product offering.
“This agreement is a demonstration of how we are extending and enhancing our marketing and trading capabilities and adding value to the portfolio. From a geographic, pricing and specification perspective, we expect this US LNG to be attractive to LNG purchasers, complement our existing LNG portfolio and allow us to exploit new opportunities.”
The agreement, which was subject to certain conditions precedent, including regulatory approvals, had an extension option for an additional ten years, and a mechanism that gave Woodside the option to forego deliveries with sufficient notice.
Cargoes to Woodside were expected to start in 2019.