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Woodside strikes HoA with ENN

Woodside strikes HoA with ENN

Photo by Bloomberg

5th April 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Australian oil and gas producer Woodside has signed a heads of agreement (HoA) with China’s ENN Group for the supply of one-million tonnes of liquefied natural gas (LNG), for a period of ten years, starting in 2025.

CEO Peter Coleman on Friday said that the HoA built on a 2018 cooperation agreement, under which the two companies committed to work together to explore a broad range of potential business opportunities.

“This HoA demonstrates market support for Woodside’s proposals to expand the Pluto LNG facility and develop the Scarborough offshore gas resource as part of our vision for the Burrup Hub in Western Australia.”

The Burrup Hub involves development of some 20-trillion to 25-trillion cubic feet of gross dry gas resources from the Browse, Pluto and Scarborough gasfields, based on current reserves, processed through proven existing LNG facilities, such as Pluto LNG, and the North West Shelf project.

The HoA with ENN remained conditional on the negotiation and execution of a fully termed sales and purchase agreement, as well as all the necessary approvals and a final investment decision on the Scarborough project.

Edited by Creamer Media Reporter

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