Woodside LNG SPA dependent on Scarborough

Woodside said the quantity of its LNG to be supplied to Uniper under the amended SPA has doubled from the initial supply.

Commencing in 2021, the volume is up to 1 Mtpa, which will increase to approximately 2 Mtpa from 2026.

The SPA’s majority of LNG supply from 2025 is conditional upon a final investment decision (FID) on the development of Woodside’s Scarborough gas resource offshore Western Australia.

Woodside CEO Peter Coleman said the agreement’s expansion demonstrates further progress towards this FID on Scarborough.

“Scarborough is a globally competitive, capital efficient LNG development which supports the decarbonisation ambitions of our customers,” said Mr Coleman.

“We expect the timing to be right for final investment decisions on Scarborough and Pluto Train 2 in the second half of this year.”

Woodside and Uniper have also agreed to collaborate on potential carbon-neutral LNG, including enhanced carbon accounting and future hydrogen opportunities.

“Woodside and Uniper share a commitment to innovatively deliver a lower-carbon future.

“Our agreement with Uniper strengthens our common goal of supplying affordable, clean energy to customers in Asia and beyond,” said Mr Coleman.

Uniper CEO Adreas Schierenbeck said the agreement supports Uniper’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 said.

“We are also pleased to strengthen our great relationship with Woodside with the additional volume agreed for this contract.”

The initial 13-year term of the SPA is unchanged.

For more information visit the Woodside website.

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