Woodside, Commonwealth LNG to work on US supply deal

A unit of Australia’s Woodside has signed a heads of agreement with Commonwealth LNG to negotiate a deal for the supply of liquefied natural gas from the latter’s proposed 8.4 mtpa plant in Cameron, Louisiana.

Under the deal, Woodside Energy Trading Singapore would buy 2 Mtpa of LNG over a period of 20 years, scheduled to begin in the second quarter of 2026.

“Woodside’s offtake obligation can be reduced or even eliminated as Commonwealth
achieves increasing thresholds of offtake commitments from other buyers,” Woodside said on Wednesday.

Furthermore, Woodside would also have an option to buy an additional 0.5 Mtpa of LNG.

“This HOA with Commonwealth secures access to competitive LNG in the Atlantic Basin and provides Woodside with the ability to build market scale through acquiring low cost supply,” Woodside CEO Meg O’Neill, said.

The agreement is non-binding and also conditional upon the negotiation and execution of a fully termed LNG sale and purchase agreement but also other approvals, Woodside said.

This also includes a final investment decision on the proposed Commonwealth LNG development.

Commonwealth LNG said last year it had expected to take an FID in the first quarter of 2022.

In January 2021, the LNG terminal developer teamed up with trader Gunvor to launch an offtake tender for volumes from its proposed liquefaction plant in Cameron.

The trading firm also committed to take up to 3 Mtpa of LNG offtake from the project.

In addition, Commonwealth LNG signed a preliminary Bangladesh supply deal with Summit Oil and Shipping (Soscl) for 1 Mtpa over a period of 20 years.

- Advertisements -

Most Popular

Sarah Bairstow named as CEO of Mexico Pacific

Mexico Pacific, the developer of the planned 15 mtpa Saguaro Energia LNG export project, has appointed Sarah Bairstow as...

India’s Chhara LNG terminal gets first cargo

India’s Hindustan Petroleum, a unit of state-owned ONGC, has received the first cargo of liquefied natural gas at its...

CNOOC to supply LNG cargo to First Gen’s Batangas FSRU terminal

Power producer First Gen has awarded a contract to a unit of China's state-owned energy giant CNOOC to supply...

More News Like This

Woodside, LNG Japan wrap up Scarborough stake sale

Australian LNG player Woodside has completed the previously announced sale of a 10 percent non-operating participating interest in the...

Commonwealth LNG pushes back FID to H1 2025

Commonwealth LNG has postponed a final investment decision on its 9.3 mtpa LNG facility in Cameron, Louisiana. According to Commonwealth...

Woodside, Kogas seal long-term LNG supply deal

Australian LNG player Woodside has signed a long-term LNG supply deal with South Korean importer Kogas. The sales and purchase...

Woodside CEO: LNG demand to rise 53 percent in next decade

Global demand for liquefied natural gas (LNG) is forecast to grow 53 percent in the coming decade between now...