Woodside signs LNG supply deal with RWE Supply & Trading

Woodside Energy Trading Singapore has signed a seven-year LNG supply deal with RWE Supply & Trading.

Under the sale and purchase agreement (SPA), Australian LNG firm and parent company Woodside will deliver approximately 0.84 million tonnes per annum (Mtpa) from its global portfolio to RWE from 2025.

Woodside development and marketing executive vice-president Meg O’Neill said that the signing of the SPA further marks the strong demand for the LNG market in the second half of this decade.

O’Neill added: “Customers are increasingly seeking to secure new energy supplies in a timeframe which supports the development of our Scarborough offshore gas resource and the expansion of the Pluto facility with the addition of a second LNG production train.

“The SPA also provides the opportunity for Woodside and RWE to explore the potential for carbon-neutral LNG production and trading.”

RWE Supply & Trading origination and gas supply chief commercial officer Andree Stracke said the deal demonstrated the company’s efforts to expand its global LNG portfolio.

“The volumes will continue to enable us to deliver effective LNG solutions to our customers and will provide a platform to further advance our existing business in Asia.”

By the second half of this year, Woodside plans to take a final investment decision on the Scarborough gas project in Western Australia, as well as for the expansion of its Pluto LNG processing train.

Woodside signed a memorandum of understanding (MOU) with RWE in 2020 to discuss beneficial opportunities related to hydrogen, which is expected to play an important role as a carbon-neutral fuel in the future global energy mix.

Last month, Woodside revised the long-term SPA with Germany’s Uniper Global Commodities to double the LNG supply volume.