Beach Energy, BP finalise LNG pact
Beach Energy has finalised the LNG sale and purchase agreement with BP Singapore, a subsidiary of BP, it said on August 8. The initial agreement was signed in September last year.
The agreement will see BP purchase all 3.75mn metric tons of Beach’s expected LNG volumes from the Waitsia Stage 2 project. Supply is expected to start in the second half of 2023 and will continue for approximately five years.
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Terms include flexibility around the commencement of supply, ensuring alignment with Waitsia Stage 2 construction and commissioning activities, Beach said. The deal contains a hybrid pricing structure linked to both Brent and Japan Korea Marker (JKM) indices. It also includes a downside price protection mechanism.
Supply will be delivered on a free on board basis from the North West Shelf (NWS) facilities in Karratha, Western Australia. BP is an existing participant in the NWS joint venture.
Waitsia is one of the largest onshore gas fields ever discovered in Australia. Gas from its second stage is on track to start flowing in the second half of 2023. Japan's Mitsui and Australia's Beach took a final investment decision on the project in 2020.