Woodside will supply China’s ENN Group with LNG for a period of 10 years, starting in 2025.
The company signed the heads of agreement (HOA) with ENN at the LNG2019 conference in Shanghai, China last week, with the deal to cover the sale of 1 million t of LNG per year from Woodside’s portfolio over the term.
The deal follows a cooperation agreement the two companies struck last year in which they committed to work together to explore potential business opportunities.
Woodside CEO Peter Coleman said the deal increased confidence in company projects that are still in development.
“This HOA demonstrates market support for Woodside’s proposals to expand the Pluto LNG facility and develop the Scarborough offshore gas resource as part of our vision for the Burrup Hub in Western Australia,” he said.
Woodside’s Scarborough development is expected to cost up to $10 billion, with the company canvassing plans to expediate the process last year.
The HOA is conditional on the execution of a fully termed sales and purchase agreement, as well as obtaining all necessary approvals and a final investment decision on Scarborough.
For more information visit the Woodside website.
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