Woodside Energy, Australia’s top independent oil and gas producer, has signed a preliminary long-term deal to supply Malaysia’s state giant Petronas with LNG from its global portfolio, including from the planned Louisiana LNG project in the United States.
Woodside Energy and Petronas have signed a non-binding Heads of Agreement (HOA) for the supply of 1 million tons per annum of LNG to Malaysia from 2028 for a period of 15 years, the Australian firm said on Wednesday.
The LNG would be supplied from Woodside’s global portfolio and may include the recently approved Louisiana LNG project in the United States, the company noted.
The agreement “reflects the value global buyers see in Woodside’s Louisiana LNG project and our reputation as a safe and a reliable supplier of energy to Asia,” said Mark Abbotsford, Woodside’s Executive Vice President and Chief Commercial Officer.
Woodside and Petronas are now working to convert the HOA into a sales and purchase agreement.
In April, Woodside Energy announced the final investment decision for the Louisiana LNG project and plans to start production in 2029.
The facility is designed to have three liquefaction trains with a total capacity of 16.5 million tons annually. This would boost Woodside’s total LNG capacity to 24 million tons annually by the next decade, the company said. Woodside also has permits to expand the Louisiana LNG facility by another two trains, which would boost its capacity to a total of 27.6 million tons annually.
“We are continuing to progress discussions with additional partners at the integrated project level,” O’Neill said at the call announcing the FID.
“This will further reduce Woodside’s capital and accelerate the value of the project.”
Woodside has sold 40% in Louisiana LNG to infrastructure investment firm Stonepeak. Under the terms of their deal, Stonepeak will provide $5.7 billion of the total capital expenditure for the project, accounting for 75% of total capex for the project this year and next.
By Tsvetana Paraskova for Oilprice.com
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