Woodside has signed a sales and purchase agreement (SPA) with Korea Gas Corp. (Kogas) for a maximum supply of up to approximately 2.2 million t of liquefied natural gas (LNG) over a three year period commencing in April 2014.
The LNG will primarily be sourced from previously uncommitted volumes from the Woodside-operated Pluto LNG plant.
The agreement is subject to a number of conditions including obtaining necessary government approvals. Other terms of this agreement are commercial-in-confidence.
Pluto LNG agreements
Existing Pluto LNG agreements with foundation buyers provide for LNG delivery of an ex-ship equivalent of approximately 3.25 million tpa. This comprises Kansai Electric (1.75 million tpa) and Tokyo Gas (1.5 million tpa). The previously stated delivery to foundation buyers of up to 3.75 million tpa, which includes foundation buyer options of up to 0.5 million tpa, no longer applies.
In a recent press release, Woodside welcomed this agreement with Kogas, noting that it demonstrated Woodside’s ability to supply LNG using increasingly flexible and innovative arrangements.
Adapted from press release by Callum O'Reilly