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Woodside (ASX:WPL) - CEO, Peter Coleman - The Market Herald
CEO, Peter Coleman
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  • Woodside Petroleum's (WPL) subsidiary, Woodside Energy Trading Singapore, and Uniper Global Commodities have amended a sale and purchase agreement
  • A 13-year supply deal was signed in December 2019 which involved Woodside supplying half a million tonnes of liquefied natural gas (LNG) from 2021 to 2024 and then one million tonnes from 2025
  • The initial 500,000 tonnes has been changed to an annual supply of one million tonnes and then two million tonnes from 2026
  • Importantly, most of the LNG supply from 2025 is conditional upon a final investment decision on the development of the Scarborough gas resource
  • The Scarborough Offshore Project is a joint venture between Woodside and BHP that is aimed at delivering a lower carbon future
  • Woodside's shares are down 1.68 per cent and trading at $26.31

Woodside Petroleum's (WPL) subsidiary, Woodside Energy Trading Singapore, and Uniper Global Commodities have agreed to amend an existing agreement.

In December 2019, Woodside and Uniper entered a binding, 13-year sale and purchase agreement (SPA).

The original SPA involved Woodside supplying 500,000 tonnes per annum of liquefied natural gas (LNG) to Uniper from 2021 until 2024. Then from 2025, the annual amount would increase to one million tonnes.

However, under the amended agreement, the initial supply commencing this year is now for a volume of up to one million tonnes per annum and will increase to roughly two million tonnes per annum from 2026.

While the agreement runs for a 13-year term, most of the LNG supply from 2025 is conditional upon a final investment decision on the development of the Scarborough gas resource in offshore WA.

The Scarborough Offshore Project is held in a joint venture with BHP Billiton Petroleum and involves the development of the Scarborough gas field with up to seven subsea, high-rate gas wells.

"Scarborough is a globally competitive, capital-efficient LNG development which supports the decarbonisation ambitions of our customers," Woodside CEO Peter Coleman said.

"Woodside and Uniper share a commitment to innovatively deliver a lower-carbon future. Our agreement with. Uniper strengthens our common goal of supplying affordable, clean energy to customers in Asia and beyond," Peter said.

Woodside and Uniper have also agreed to collaborate on potential carbon-neutral LNG, including enhanced carbon accounting, and future hydrogen opportunities.

"With this agreement, Uniper continues its path to implement its strategy of growth in Asia, trading in cleaner fuels and decarbonisation. We are also pleased to strengthen our great relationship with Woodside with the additional volume agreed for this contract," Uniper CEO Andreas Schierenbeck said.

Woodside's shares are down 1.68 per cent and trading at $26.31 at 12:20 pm AEDT.

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