A joint venture between Woodside and EDL has signed another contract to supply LNG from the Pluto truck loading facility near Karratha in Western Australia.
Australia’s Sheffield Resources said in a statement on Monday that its joint venture with Yansteel, Kimberley Mineral Sands, has signed a binding five-year agreement with Woodside Energy (LNG Fuels & Power) and EDLLNG Fuel to Power.
The deal can also be extended for additional five years.
Under the contract, Woodside and EDL would supply about 650 terajoules of LNG per year to the Thunderbird mineral sands project in northern Western Australia, according to Sheffield.
The duo will deliver LNG via road tarnkers from Woodside’s Pluto LNG truck loading facility to the KMS LNG storage facility.
Sheffield said the agreement enables flexible, long-term gas supply to KMS for power generation.
The deal is subject to a number of customary conditions precedent, including KMS making a final investment decision, following the completion of project financing of Thunderbird.
Sheffield said Thunderbird construction “is continuing to advance at a significant pace and remains on track for first production in early 2024.”
Woodside and EDL started delivering LNG to customers from the Pluto truck loading facility back in 2019.
Located at Woodside’s Pluto LNG export terminal on the Burrup Peninsula, the facility can load up to 200,000 tonnes of LNG per year, displacing up to 300 million liters of diesel, according to Woodside.
The duo signed a 10-year deal in April last year to supply trucked LNG to Strandline’s Coburn mineral sands project in Western Australia.
After that, Woodside and EDL also agreed two new supply deals with Abra Mining and Calidus Resources.