Woodside Petroleum Ltd. subsidiary Woodside Energy Trading Singapore Ptd. Ltd. has signed a heads of agreement (HOA) with Germany energy firm Uniper Global Commodities SE for the supply of as much as 600,000 tonnes/year of LNG over a period of 4 years starting in 2019.
The LNG will be supplied from Woodside’s portfolio sources to Europe and Asia.
The LNG pricing arrangements have been kept confidential.
This is the second LNG agreement for Woodside outside its standard Asia-Pacific sphere and follows a similar deal with another German utility, RWE, in October 2017.
Woodside Chief Executive Officer Peter Coleman said this latest agreement illustrates the diversification of the company’s buyer relationships and the increasing interaction between participants in the Asia-Pacific and Atlantic LNG markets as international trading patterns become more liquid.
Uniper Chief Executive Officer Keith Martin said the deal is a further step for Uniper in establishing long-term partnerships globally and is in line with the company’s ambitions to grow Uniper’s Asian portfolio whilst leveraging the company’s midstream assets in Europe.
The HOA is conditional on the execution of a fully termed LNG sales and purchase agreement.