Oz Woodside Inks Domestic Gas Supply Deal
Australia’s Woodside Energy said November 20 that it has entered into a long-term gas sale and purchase agreement with Perdaman Chemicals and Fertilisers for the supply of pipeline gas for a 20-year term.
According to the agreement, Woodside will supply 125 terajoules/day (3.3mn m3/day) to Perdaman’s proposed urea plant. Gas will be supplied from Woodside’s portfolio and primarily sourced from Woodside’s proposed Scarborough development.
"The agreement is subject to a number of conditions and supply will commence between 2023 and 2025," Woodside said. Execution of the agreement follows a memorandum of understanding signed between Woodside and Perdaman in April 2018.
Woodside's CEO, Peter Coleman, said the agreement demonstrated the company’s commitment to delivering domestic gas to further support investment in the Pilbara region and create local jobs. "This is a significant domestic gas sale and represents another step towards the delivery of the proposed Burrup Hub. The realisation of our vision for the hub will ensure that the world-class North West Shelf and Pluto facilities on the Burrup Peninsula are positioned to meet both domestic gas and global LNG demand for decades to come," he said.
Perdaman, part of the multinational Perdaman Group, is based in Western Australia and is proposing to build a 2mn metric tons/yr urea plant on the Burrup Peninsula.