Woodside, Commonwealth LNG finalize US supply deal

A unit of Australia’s Woodside and Commonwealth LNG have finalized the previously announced deal for LNG supply from the latter’s proposed 8.4 mtpa plant near Cameron, Louisiana.

Woodside announced the conversion of the of the non-binding heads of agreement into two binding LNG sale and purchase agreements in a statement on Monday.

The deals are for the supply of up to 2.5 million tonnes per annum (Mtpa) of LNG over 20 years to Woodside Energy Trading Singapore from Commonwealth’s LNG export facility under development in Cameron Parish, Louisiana.

Key terms remain unchanged in the binding SPAs, with first deliveries expected to start in mid-2026, according to Woodside.

The SPAs would become fully effective upon the satisfaction of customary conditions including an affirmative final investment decision on the project, it said.

Woodside’s CEO Meg O’Neill said the agreements secure for Woodside “low-cost LNG volumes in the Atlantic Basin in a period of expected strong demand as Europe seeks alternatives to Russian pipeline gas.”

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.

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