Australia’s Beach Energy, BP finalize LNG supply deal

Australia’s Beach Energy said it has finalized a deal revealed last year under which it will supply LNG to a unit of energy giant BP.

Under the sales and purchase deal, BP Singapore will buy about 3.75 million tonnes of Beach’s expected LNG volumes from the second stage of the Waitsia gas project in Western Australia.

As previously reported, Japan’s Mitsui & Co and Beach have in December 2020 taken a final investment decision on the expansion project. Prior to that, the partners signed third-party tolling deals with Australia’s Woodside and its North West Shelf LNG venture participants.

BP is also a partner in the NWS LNG project.

Under the deal with Beach, BP would start receiving supplies from the NWS LNG plant on a free on board basis in the second half of 2023 and would continue for about five years, according to a statement by Beach.

Terms include flexibility around the start of supply, ensuring alignment with Waitsia
Stage 2 construction and commissioning activities, it said.

Moreover, the LNG SPA contains a hybrid pricing structure linked to both Brent and Japan Korea Marker (JKM) indices.

Pricing parameters agreed support Beach’s exposure to the current commodity cycle prices and do not restrict upside price participation. The SPA also includes a downside price protection mechanism, Beach said.

“Signing of the LNG SPA with BP is a significant milestone in our delivery of material growth and another step closer to Beach becoming a supplier of LNG to the global market,” CEO Morné Engelbrecht said.

“Once LNG sales commence, Beach will have further diversified its commodity pricing exposure. Beach’s oil and gas portfolio will provide exposure to Brent oil prices, spot LNG prices, east coast, west coast and New Zealand domestic gas prices, and oil-linked gas prices,” Engelbrecht said.

Most Popular

LNG Canada to send third cargo

Shell-led LNG Canada is expected to soon ship the third cargo of liquefied natural gas from the Kitimat facility, according to shipping data.

Hyundai LNG Shipping sells another carrier for scrap

South Korea's Hyundai LNG Shipping has sold another steam liquefied natural gas (LNG) carrier for scrap, according to brokers.

Technip Energies wins contract for Eni’s Coral Norte FLNG

France-based LNG engineering giant Technip Energies has won a contract for preliminary work on Eni's second FLNG project in Mozambique, Coral Norte (Coral North).

More News Like This

Former Shell CFO joins BP’s board

UK-based energy giant BP has appointed Simon Henry, Shell's former finance chief, to its board as a non-executive director.

Argentina’s Enarsa to spend $567 million on LNG purchases

Argentina's state-owned LNG importer, Energia Argentina (Enarsa), will spend $570 million to purchase 22 liquefied natural gas (LNG) cargoes from BP and TotalEnergies this year.

BP seals LNG SPA with Italy’s A2A

UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with Italian electricity and gas distributor A2A.

Shell denies BP takeover talks

UK-based LNG giant Shell denied it was in talks to buy BP following media reports.