According to a Woodside statement, under the sales and purchase deal (SPA), Woodside will supply about 0.4 million tonnes, or six cargoes, of LNG per year over 10 years on a delivered basis to Japan, starting in April 2026.
This follows a non-binding deal the two firms signed earlier this year.
LNG delivered to Jera under the SPA will be sourced from volumes across Woodside’s global portfolio.
Woodside executive VP and chief commercial officer Mark Abbotsford said the execution of theSPA strengthened the commitment to explore business opportunities alongside Jera.
“This LNG offtake agreement is Woodside’s first long-term sale to JERA from our global portfolio and delivers on one of the core elements of our strategic relationship outlined earlier this year,” he said.
“We understand the demand from our customers in the Asian region for reliable energy. LNG continues to be an important energy source for Japan, one which can support the country’s efforts to decarbonize,” Abbotsford said.
In July, Woodside entered into a non-binding heads of agreement for the sale and purchase of LNG.
The deal was announced as part of a binding agreement under which Woodside will sell Jera a 15.1 percent non-operating interest in the Scarborough JV for about $1.4 billion.
Woodside expects to complete the Scarborough equity sale to Jera before the end of 2024.
In November 2021, Woodside took a final investment decision on the Scarborough and Pluto LNG Train 2 developments.
The projects also include new domestic gas facilities and modifications to the first train.
Woodside’s Pluto LNG terminal currently has one train with a capacity of 4.9 mtpa and Woodside and US engineer Bechtel started building the second Pluto train last year.
Pluto Train 2 will get gas from the Scarborough gas field, located about 375 km off the coast of Western Australia, through a new trunkline long about 430 km.
At the end of the second quarter, Woodside’s Scarborough and the second Pluto LNG train project were 67 percent complete.
Woodside also said the project’s price tag rose 4 percent to $12.5 billion from $12 billion.
The schedule remains unchanged, with first LNG cargo targeted for 2026.
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