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Woodside enters gas supply agreement with fertilizer company

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LNG Industry,

Woodside Energy Ltd has announced that it has entered into a long-term gas sale and purchase agreement (GSPA) with Perdaman Chemicals and Fertilisers Pty Ltd for the supply of pipeline gas for a 20-year period.

The agreement is for approximately 125 TJ/d of gas, which will be used in Perdaman’s proposed urea plant. Gas will be sourced from Woodside’s portfolio and primarily sourced from its Scarborough development. The agreement remains subject to various conditions and supply will begin between 2023 and 2025.

The signing of the agreement follows a memorandum of understanding (MoU) that was signed between the two companies in April this year.

Peter Coleman, the CEO of Woodside, said: “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.”

Perdaman is based in Western Australia and is looking to construct a 2 million tpy urea facility on the Burrup Peninsula.

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