WOODSIDE Energy has amended an agreement to double the amount of LNG it supplies to German energy company Uniper Global Commodities.
The original sale and purchase agreement, signed in December 2019, was for Woodside to supply 1 million tonnes per year of LNG. This has been upped to about 2 million tonnes per year from 2026.
Most of the LNG supply from 2025 is conditional upon a final investment decision on the development of the Scarborough gas resource off the coast of Western Australia.
Woodside CEO Peter Coleman said the expansion of the existing SPA with Uniper demonstrated further progress towards a final investment decision on the Scarborough development.
“Scarborough is a globally competitive, capital efficient LNG development which supports the decarbonisation ambitions of our customers. We expect the timing to be right for final investment decisions on Scarborough and Pluto Train 2 in the second half of this year,” Coleman said.
“This agreement with Uniper highlights the strong market demand we are seeing for Scarborough LNG as customers consider their energy requirements from the second half of this decade. We have now secured long-term customers for over 40% of our expected Scarborough equity production.”
The Scarborough offshore gas field is about 375 kilometres west-northwest of the Burrup Peninsula. Woodside proposes to initially develop the field with up to seven subsea wells. These will be tied back to a semi-submersible floating production unit in water 950 metres deep.
These facilities will be connected by a 430-kilometre pipeline to a proposed expansion of the existing Pluto LNG onshore facility.
Woodside estimates the production capacity of the project at 6.5 million tonnes per year of LNG.