Woodside doubles LNG supplies in Uniper contract update

Australian independent Woodside Petroleum has doubled the volume of LNG it plans to supply German utility Uniper under a revised sales and purchase agreement (SPA) signed in December 2019. It may double it again conditional on the final investment decision (FID) for the Scarborough gas project in the Carnarvon basin offshore Western Australia.

The quantity of LNG to be supplied to Uniper starting this year is now for up to 1mn t/yrand possibly increasing to about 2mn t/yr from 2026, Woodside said. The 13-year terms of the SPA is unchanged.

Woodside and Uniper have also agreed to work on potential carbon-neutral LNG, including enhanced carbon accounting, and future hydrogen opportunities, Woodside said.

Woodside last year deferred the FID on Scarborough to later this year. The concept design for Scarborough is to provide up to 8mn t/yr at peak output, mainly as feedstock for the second production train planned at the 4.3mn t/yr Pluto LNG. The rest will be split between backfill for Pluto's existing train and for the 16.3mn t/yr North West Shelf, with the projects to be connected by a 3.3km pipeline to allow gas flows to switch between them.

Uniper is planning to build the [Wilhelmshaven LNG terminal] (https://direct.argusmedia.com/newsandanalysis/article/2158513) in Germany.

By Kevin Morrison