Woodside finalises gas supply agreement with Western Australia

Woodside has signed agreements with the Western Australian government to supply more gas to the North West Shelf (NSW) LNG project from its Pluto field.

The natural gas pipeline will transport 24.7 petajoules of gas between 2022 and 2025 produced from the Pluto LNG project to the NSW venture’s Karratha Gas Plant located on the Burrup Peninsula in the Pilbara region.

After 2025, Woodside will supply an additional 45.6 petajoules of domestic gas from its existing share of gas from the NWS project.

In December 2020, Woodside and the NWS Project participants signed fully-termed gas processing agreement for processing nearly three million tonnes of LNG and about 24.7 petajoules of domestic gas at the Karratha Gas Plant from 2022 to 2025.

Western Australia Premier Mark McGowan said: “The Pluto Acceleration project helps keep the North West Shelf LNG trains full and clears the way for new LNG export industry development.

“These agreements with Woodside reinforce our domestic gas policy and provide certainty for LNG industry investors and domestic gas consumers.”

Woodside had commenced construction on the additional infrastructure needed at the Pluto-KGP Interconnector and the gas processing plant.

Woodside CEO Peter Coleman said: “Connecting the Pluto and NWS facilities accelerates the production of offshore Pluto gas and provides flexible access to emerging LNG processing capacity. The Pluto-KGP Interconnector is the first step in realising our vision for a regional LNG hub on the Burrup Peninsula.”

Woodside Burrup owns an operating stake of 16.67% in the NWS Project while other partners include BHP Billiton Petroleum (North West Shelf), BP Developments Australia, Chevron Australia, Japan Australia LNG, and Shell Australia each own a 16.67% stake.