Woodside Energy has announced the signing of significant liquefied natural gas (LNG) sale and purchase agreements with Uniper, marking a major step forward for its Louisiana LNG project and reinforcing the ongoing robust demand for LNG globally.
Under the agreements, Woodside will supply Uniper with one million tonnes per annum (Mtpa) of LNG from Louisiana LNG LLC and up to one Mtpa from its global portfolio via Woodside Energy Trading Singapore Pty. Ltd.
The deals are structured to deliver LNG on a free-on-board basis from Louisiana LNG for up to 13 years from the commercial operations date (COD), and on a delivered ex-ship basis from Woodside’s global portfolio into Europe through to 2039.
Both agreements are subject to Woodside making a final investment decision (FID) on the three-train, 16.5 Mtpa foundation development of Louisiana LNG.
Woodside CEO Meg O’Neill described the agreements as a pivotal milestone for the Louisiana LNG project: “We are delighted to advance our longstanding relationship with Uniper through these milestone supply agreements.
“Uniper’s commitment speaks volumes about Woodside’s track record as a trusted LNG provider, built on decades of delivering reliable and flexible supply solutions for our global partners.”
“Louisiana LNG is Woodside’s largest growth project.
“It leverages the robust US gas resource, an outstanding site, best-in-class EPC and technology partners and Woodside’s track record of successful project delivery.
“The addition of Atlantic Basin LNG supply to our established position in the Pacific strengthens Woodside’s portfolio and allows us to tailor contract structures based on various price indices and tenures to better meet our customers’ diverse needs.
“As we continue to progress sell-down opportunities for Louisiana LNG, these agreements reinforce the project’s unique advantages and its economic competitiveness.
“Uniper’s leadership in European energy markets make them an ideal counterparty, and this builds on Woodside’s existing offtake arrangements, underscoring our shared commitment to delivering value for all companies and the economies in which each operate.
“In an environment of increasing demand for dependable sources of LNG, particularly in Europe, we remain focused on delivering reliable energy supply that will benefit our partners and stakeholders for years to come,” she said.
Uniper CEO Michael Lewis emphasised the strategic importance of the deal for European energy security and industrial competitiveness: “We are very pleased to secure additional LNG supplies for our customers in Europe from a reliable LNG supplier like Woodside.
“This deal will support our security of supply and flexible generation strategy together with the potential development of additional gas-fired power plants in Germany to complement the renewable build-up.
“Woodside is one of our biggest LNG suppliers globally with a solid track record of deliveries of LNG to us from their existing projects.
“With this new project in Louisiana, we are further extending the cooperation with Woodside.
“Long-term LNG contracts like this contribute directly to the competitiveness of European industry.
“Reliable and cost-effective energy supply is a cornerstone of a strong industrial base, and deals like this help ensure our customers can count on both.”
The agreements come as Woodside’s Louisiana LNG project, its largest growth initiative, advances towards FID, backed by recent financial commitments and a revised EPC contract with Bechtel.
The project is positioned to capitalise on the strong US gas resource base and is expected to play a critical role in meeting the rising demand for LNG, particularly in Europe.
