Woodside’s new gas supply deal underpinned by Scarborough development

Australian energy giant Woodside is working to firm up a gas supply deal which will be supplied from its domestic portfolio, including gas from its Scarborough development located off Australia.

Woodside said on Thursday it has entered into a non-binding memorandum of understanding (MOU) with Perdaman Chemicals and Fertilisers for the supply of natural gas.

Under the terms of the MOU, Woodside will supply approximately 125 terajoules per day of domestic gas for use in Perdaman’s proposed 2 million tonne per annum urea plant on the Burrup Peninsula.

Natural gas will be supplied from Woodside’s portfolio of domestic gas underpinned by the proposed Scarborough development. Supply will start from the early 2020s for a period of between 20 and 25 years.

Woodside completed the $444 million acquisition of ExxonMobil’s interest in the Scarborough gas field back in March. The leases acquired contain the Scarborough, Thebe and Jupiter gas fields, which are estimated to contain gross (100%) contingent resources (2C) of 9.2 Tcf of dry gas.

Woodside, with its partner BHP Billiton, is now working on the development concept prior to entering FEED. A final investment decision for the project is expected to be made in 2020 and first production from the development is expected in 2025.

Woodside and Perdaman have committed to negotiate in good faith a gas sale and purchase agreement consistent with the terms of the MOU this year.

Woodside CEO, Peter Coleman, said: “Supplying domestic gas from our portfolio will underpin a fresh wave of investment in the Pilbara region.

“Our Burrup Hub projects can support the economic diversification of the region in the years ahead and ensure we are positioned to meet long-term global LNG demand,” he said.

Share this article

Follow Offshore Energy Today

Events>

<< Oct 2019 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

Executive Oil Conference & Expo 2019

Executive Oil Conference and Exhibition is a unique opportunity to meet with all of the region’s…

read more >

Oil & Gas Vietnam 2019

Oil & Gas Vietnam (OGAV) 2019 is the only specialized oil & gas event in Vietnam that brings together an international congregation of both upstream and downstream oil and gas companies and also its supporting industries gathered in the heart of Vietnam’s oil and gas industry in Vung Tau, to showcase the latest developments in the oil and gas industry.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply