Australia’s Woodside has entered into a long-term sale and purchase agreement (SPA) with Uniper for the supply of LNG from Woodside’s global portfolio, including the Scarborough offshore gas field in W. Australia.
The execution of the SPA follows the signing of a heads of agreement (HOA) between Woodside and Uniper in September 2019.
Woodside said on Tuesday that the agreement was for a term of 13 years, starting in 2021.
According to the Australian energy giant, the quantity of LNG to be supplied under the SPA will initially be up to 0.5 million tonnes per annum (Mtpa), increasing to approximately 1 Mtpa from 2025.
Woodside added that the supply from 2025 was conditional upon a final investment decision on the Scarborough development. The investment decision is expected to be made in the first half of 2020.
The Scarborough gas field, discovered in 1979, is located off the coast of Western Australia approximately 220 kilometers northwest of Exmouth in 900 meters of water. It is one of the most remote of the Carnarvon Basin gas resources.
The Scarborough area contains the Scarborough, Thebe and Jupiter gas fields, which are estimated to contain gross (100%) contingent resources (2C) of 9.2 Tcf of dry gas.
Scarborough gas would be initially processed on a deep-water floating production unit and transported through a 430 km pipeline to a proposed second LNG production train at the existing Woodside-operated Pluto LNG facility on Western Australia’s Burrup Peninsula.
The first production from the development is expected in 2025, to meet what Woodside expects to be a global LNG supply gap.
Offshore Energy Today Staff
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