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Woodside inks LNG offtake

19th February 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Energy major Woodside has inked a sale and purchase agreement (SPA) with RWE Supply & Trading GmbH to supply liquefied natural gas (LNG), starting in 2025.

Under the seven-year agreement, Woodside would supply some 0.84-million tonnes a year, with the SPA not subject to final investment decision (FID) on any project.

Woodside executive VP development and marketing Meg O’Neill said that the SPA built on Woodside’s and RWE’s strong relationship developed through existing mid-term and spot business in Asia-Pacific and the Atlantic basin, adding that the signing of the SPA was further evidence of the strong market demand for LNG in the second half of this decade.

“Customers are increasingly seeking to secure new energy supplies in a timeframe which supports the development of our Scarborough offshore gas resource and the expansion of the Pluto facility with the addition of a second LNG production train.

“This agreement with RWE is another demonstration of the momentum we are gathering ahead of our targeted FID on Scarborough and Pluto Train 2 in the second half of this year.

“The SPA also provides the opportunity for Woodside and RWE to explore the potential for carbon-neutral LNG production and trading,” she said.

In October 2020, Woodside and RWE also signed a memorandum of understanding (MoU) to discuss mutually beneficial hydrogen-related opportunities. The MoU supports Woodside’s plans to develop such opportunities.

Hydrogen is expected to play an increasingly important role in the future global energy mix as a carbon-neutral fuel. RWE is progressing approximately 30 hydrogen projects, mostly located in Europe.

Edited by Creamer Media Reporter

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