Woodside has penned a deal to supply LNG to RWE Supply & Trading GmbH (RWE) for seven years from 2025.
The company announced that the quantity would be approximately 0.84 million tonnes per annum and was not subject to final investment decision on any project.
Woodside Executive Vice President Development and Marketing Meg O’Neill said the signing of the deal was further evidence of the strong market demand for LNG in the second half of this decade.
“Customers are increasingly seeking to secure new energy supplies in a timeframe which supports the development of our Scarborough offshore gas resource and the expansion of the Pluto facility with the addition of a second LNG production train.
“This agreement with RWE is another demonstration of the momentum we are gathering ahead of our targeted FID on Scarborough and Pluto Train 2 in the second half of this year.
“The SPA also provides the opportunity for Woodside and RWE to explore the potential for carbon-neutral LNG production and trading,” she said.
Chief Commercial Officer Origination and Gas Supply at RWE Supply & Trading Andree Stracke said the transaction demonstrated RWE’s ongoing commitment to expanding its global LNG portfolio.
“RWE is delighted to enter into a longer-term LNG supply agreement with Woodside which further reinforces the strong relationship we have developed together over the last years.
“The volumes will continue to enable us to deliver effective LNG solutions to our customers and will provide a platform to further advance our existing business in Asia,” he said.
In October 2020, Woodside and RWE also signed a memorandum of understanding (MOU) to discuss mutually beneficial hydrogen-related opportunities. The MOU supports Woodside’s plans to develop such opportunities.
Hydrogen is expected to play an increasingly important role in the future global energy mix as a carbonneutral fuel. RWE is progressing approximately 30 hydrogen projects, mostly located in Europe.