Woodside will increase the supply of LNG to German energy company Uniper after the two companies agreed to amend the binding long-term sale and purchase agreement (SPA) announced in December 2019.
The amended 13-year agreement will see Woodside double the quantity of LNG to be shipped to Uniper, with the two companies to also collaborate on potential carbon-neutral LNG, including enhanced carbon accounting, and future hydrogen opportunities.
“Initial supply commencing in 2021 is now for a volume of up to 1 million tonnes per annum (Mtpa), increasing to approximately 2 Mtpa from 2026,” the company said in a statement.
Woodside CEO Peter Coleman said the majority of LNG supply from 2025 was conditional upon a final investment decision on the development of the Scarborough gas resource offshore Western Australia.
“Scarborough is a globally competitive, capital efficient LNG development which supports the decarbonisation ambitions of our customers,” Mr Coleman said.
“We expect the timing to be right for final investment decisions on Scarborough and Pluto Train 2 in the second half of this year.
“This agreement with Uniper highlights the strong market demand we are seeing for Scarborough LNG as customers consider their energy requirements from the second half of this decade. We have now secured long-term customers for over 40% of our expected Scarborough equity production.”
Uniper CEO Andreas Schierenbeck said the agreement supported the company’s decarbonisation plans.
“With this agreement Uniper continues its path to implement its strategy of growth in Asia, trading in cleaner fuels and decarbonisation,” he continued.
“We are also pleased to strengthen our great relationship with Woodside with the additional volume agreed for this contract.”