Woodside Energy Ltd., Perth, has signed a heads of agreement with Chinese distributor ENN Group for the sale of 1 million tonnes/year of LNG from Woodside for 10 years starting in 2025.
Peter Coleman, Woodside chief executive officer, signed the deal in Shanghai at the LNG2019 conference saying that the agreement builds on an October 2018 cooperation agreement under which the two companies committed to work together to evaluate a broad range of potential business opportunities.
Coleman added that the HOA demonstrated market support for Woodside’s proposals to expand the Pluto LNG facility on the Burrup Peninsula and develop Scarborough field on the Exmouth Plateau as part of the vision for the Burrup Hub in Western Australia.
ENN is keen to increase its market share in China’s gas distribution and retail sector, as well as internationally.
The HOA is conditional on the negotiation and execution of a fully termed sales and purchase agreement and obtaining all the necessary approvals as well as reaching a final investment decision on the Scarborough development project.
