Woodside boosts Scarborough development with LNG supply agreement

Woodside Energy Trading Singapore Pte Ltd. has agreed to double its long-term supply of LNG to Uniper Global Commodities SE, boosting Woodside’s plans for development of Scarborough gas field.

The companies have amended their original December 2019 sale and purchase agreement such that Woodside will now begin its initial supply to Uniper this year with up to 1 million tonnes/year (tpy) and increase it to around 2 million tpy from 2026.

Woodside will supply the LNG from its global portfolio although most of the supply from 2025 will be conditional upon a final investment decision on development of Scarborough gas fields on the Exmouth Plateau offshore Western Australia.

The 13-year term of the original 2019 sales and purchase agreement remains unchanged.

Woodside also has agreed to collaborate with Uniper on potential carbon-neutral LNG, including enhanced carbon accounting, and future hydrogen opportunities.

Expansion of the original agreement demonstrated further progress towards FID for Scarborough, said Peter Coleman, Woodside chief executive officer.

“We expect the timing to be right for final investment decisions on both Scarborough development and the related Pluto Train 2 construction on the Burrup Peninsula during the second half of 2021,” he said.

Woodside has now secured long-term customers for more than 40% of its expected Scarborough equity production.