Australian LNG player Woodside has signed a new domestic natural gas supply deal.
The LNG producer said it had entered into a gas sales agreement with Qenos for the supply of natural gas.
The volumes would come from Woodside’s equity position in Bass Strait in the southeastern Australian state of Victoria.
According to Woodside, the GSA covers the supply of 4.5 petajoules of gas in 2023 for use at Qenos’ polyethylene manufacturing facilities at Altona in Victoria and Botany Bay in New South Wales.
Qenos is Australia’s only manufacturer and and supplier of polyethylene and polymers. Its products are used in myriad applications including key food and drink packaging, agriculture, automotive, water, as well as mining and waste management industries.
On the other hand, Woodside is a non-operating joint venture participant in the Bass Strait project.
Gas production from Bass Strait currently supplies about 40 percent of Australian east coast domestic gas demand, Woodside said.
Woodside executive VP marketing and trading, Mark Abbotsford, said in the statement that this deal “ensures affordable gas supply to an important large-scale industrial consumer at a time of increased volatility and uncertainty in east coast energy markets.”
Moreover, he said that Woodside would deliver “competitively priced gas” to support the energy needs of an essential domestic manufacturer and major employer in Victoria and New South Wales.