PERTH (miningweekly.com) – Australian energy major Woodside Energy has struck two binding liquefied natural gas (LNG) sales agreements with the Commonwealth LNG export terminal project, in Louisiana.
The two sale and purchase agreements converted two previous non-binding heads of agreement, and cover the supply of up to 2.5-million tonnes a year of LNG over a 20-year period from Commonwealth’s LNG export facility under development in Cameron Parish.
First LNG deliveries are expected to start in mid-2026, and the sales and purchase agreements will become fully effective upon the satisfaction of customary conditions including an affirmative final investment decision on the project.
“We’re very pleased to have Woodside involved in our project,” said Commonwealth executive chairperson Paul Varello.
“Woodside is known throughout the LNG industry for its keen technical capabilities and commercial agility. These share and purchase agreements establish Woodside as a cornerstone customer and mark a major milestone in the development of Commonwealth LNG.”
Commonwealth president and CEO Farhad Ahrabi added that the modular construction approach allows Commonwealth LNG to provide greater cost and schedule certainty to customers as it delivers affordable, reliable, cleaner energy to meet global demands.
“We’re proud to have an international LNG customer of Woodside’s stature recognize these advantages and show this level of commitment,” he added.
Woodside CEO Meg O’Neill said the agreements provided the basis for a long-term partnership with Commonwealth LNG.
“The agreements secure for Woodside low-cost LNG volumes in the Atlantic basin in a period of expected strong demand as Europe seeks alternatives to Russian pipeline gas,” she said.
Commonwealth LNG is an 8.4-million-tonne-a-year LNG liquefaction and export facility located on the west bank of the Calcasieu Ship Channel at the mouth of the Gulf of Mexico. The facility will have six 50 000 M3 modular storage tanks and will be able to accommodate vessels up to 216 000 M3.