BP to buy LNG from Australia’s Beach Energy

Australia’s Beach Energy said it has signed a heads of agreement to supply LNG to a unit of energy giant BP.

Under the deal, BP Singapore would buy about 3.75 million tonnes of Beach’s expected LNG volumes from the second stage of the Waitsia gas project in Western Australia, Beach said in a statement on Monday.

As previously reported, Japan’s Mitsui & Co and Beach have in December 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. The firm would buy Beach’s share of LNG from Waitsia gas project stage 2 on a free on board basis, the statement said.

According to Beach, the supply from the NWS LNG facilities would start in the second half of 2023.

The agreed LNG price would be linked to both Brent and Japan Korea Marker (JKM) price indices and includes a downside price protection mechanism, Beach said.

This hybrid pricing structure would provide Beach with “favourable price movements during North Asia winter periods.”

Beach and BP expect to sign a fully termed LNG supply and purchase agreement in the second half of fiscal 2022.

Most Popular

NextDecade takes FID on fourth Rio Grande LNG train

US LNG firm NextDecade has made a final investment decision on the fourth train at its Rio Grande LNG facility in Texas.

Shell pens US LNG supply deal with Edison

UK-based LNG giant Shell has signed a long-term deal to supply US LNG to Italian energy firm Edison, a unit of EDF.

YPF CEO expects FIDs on FLNG projects with Eni, Shell in 2026

YPF CEO Horacio Marin confirmed on Wednesday that the state-owned oil and gas company and its partners Eni and Shell expect to take final investment decisions on two stages of the Argentina LNG project in 2026.

More News Like This

Botas pens three-year LNG supply deals with BP, Shell, and Eni

Turkiye’s state-owned natural gas and LNG firm Botas has signed three-year deals to buy LNG from BP, Shell, and Eni.

Baker Hughes scores Tangguh LNG gig

US energy services firm Baker Hughes has secured a long-term service agreement award from UK-based energy giant BP for its Tangguh LNG plant in Papua Barat, Indonesia.

Kosmos: Tortue FLNG to hit full capacity in Q4

UK-based energy giant BP and its partners expect the 2.7 mtpa Golar FLNG Gimi, which serves the Greater Tortue Ahmeyim LNG project offshore Mauritania and Senegal, to reach its nameplate capacity in the fourth quarter of this year, according to US-based Kosmos Energy.

BP names new chair

UK-based energy giant and LNG player BP has appointed Albert Manifold to succeed Helge Lund as chair of the company.