Australia’s Woodside will double the volumes of LNG it plans to supply to Germany’s Uniper as part of an amended long-term deal revealed on Monday.
The duo signed a 13-year deal back in December 2019 for up to 0.5 million tonnes per annum of LNG supply starting this year and up to 1 Mtpa from 2025.
Under the new deal, initial supply in 2021 is now for a volume of up to 1 Mtpa, increasing to
about 2 Mtpa from 2026.
In addition, the majority of LNG supply from 2025 is conditional upon a final investment decision on the development of the Scarborough gas resource offshore Western Australia, Woodside said in a statement. The project would feed the second Pluto LNG train.
Moreover, the duo have also agreed to collaborate on potential carbon-neutral LNG, including enhanced carbon accounting, and future hydrogen opportunities.
Woodside CEO Peter Coleman said the expansion of the existing SPA with Uniper demonstrated further progress towards a final investment decision on the Scarborough development.
“We expect the timing to be right for final investment decisions on Scarborough and Pluto Train 2 in the second half of this year,” he said.
“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,” Coleman said.
Furthermore, he added that Woodside has now secured long-term customers for over 40% of the firm’s expected Scarborough equity production.
Uniper CEO Andreas Schierenbeck said the agreement supported 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.