Woodside Inks LNG Supply Deal with ENN

By Meng Meng and Jessica Jaganathan
Friday, April 5, 2019

Australia's Woodside Petroleum WPL.AX has signed a Heads of Agreement (HOA) to supply liquefied natural gas (LNG) to China's ENN Group for 10 years from 2025, both companies said on Friday.

Woodside, Australia's biggest listed oil and gas explorer, said in a statement the volume covered by the HOA is 1 million tonnes per annum (mtpa), to be sourced from Woodside's portfolio of gas supply. Signed at the LNG 2019 conference in Shanghai, the HOA follows a cooperation agreement sealed last October.

ENN is aiming to increase its market share in China's gas distribution and retailing sector, as well as internationally, Woodside said in its statement.

"This HOA demonstrates market support for Woodside's proposals to expand the Pluto LNG facility and develop the Scarborough offshore gas resource as part of our vision for the Burrup Hub in Western Australia," Woodside's chief executive Peter Coleman said in the statement.

Woodside added that the HOA remains conditional upon the negotiation and execution of a fully termed sales and purchase agreement, as well as obtaining all necessary approvals and a final investment decision on Scarborough, a project off northwestern Australia.

In November, last year, Woodside entered a long-term gas sale and purchase agreement with Perdaman Chemicals and Fertilisers for the supply of pipeline gas from the Scarborough development.

Last month, Woodside CEO Coleman said the company was slowing down marketing for the Scarborough development, despite a lot of interest for the gas, due to weak prices for Asian LNG, currently near a three-year low.

In May last year, Woodside outlined plans to accelerate and expand the Scarborough project at an expected cost of $10 billion.

Woodside in January pledged between $1.6 billion and $1.7 billion towards projects this year, with most of that flowing into early work on the Scarborough and Browse gas developments, and expansion of its Pluto LNG plant in Australia. The company aims to double LNG production by 2027.


(Reporting by Meng Meng and Jessica Jaganathan; Editing by Kenneth Maxwell)

Categories: Contracts Energy LNG Natural Gas Australia/NZ

Related Stories

Woodside Inks Long-Term LNG Supply Deal with China Resources

MODEC and Samsung Team Up to Install Carbon Capture Tech on FPSO

Shell Predicts 60% Rise in LNG Demand by 2040 with Asia Leading the Way

Santos Hires Weststar-GAP for Timor-Leste Offshore Helicopter Services

Subsea Redesign Underway for Floating Offshore Wind

Offshore Service Vessels: What’s in Store in 2025

Yinson and PetroVietnam JV Get FSO Contract for Vietnamese Field

Saipem Gets $1B Job at BP’s Indonesian Gas and CCUS Project

BP Greenlights $7B CCUS Scheme Tied to Indonesia LNG Facility

TotalEnergies and Oil India to Jointly Tackle Methane Emissions Issues

Current News

Jadestone Submits Field Development Plan for Assets Off Vietnam

Woodside Inks Long-Term LNG Supply Deal with China Resources

CNOOC Starts Production at Two New Oil and Gas Projects

Argentina YPF to Shed Offshore Exploration Projects

Cairn India Might Invest in US Oil Servicing Firms to Increase Production

All Gas from Conrad’s Mako Field to be Sold to Indonesia’s PLN

ORE Catapult and Japan’s FLOWRA to Jointly Advance Floating Wind

Shell Hires Noble’s Drillship for Work in Southeast Asia

Second Hai Long Substation Heads to Project Site Offshore Taiwan

Shell Launches Next Phase of Malaysia's Deepwater Project with First Oil Production

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com