Page 11 - GLNG Week 37 2022

GLNG AMERICAS GLNG

Woodside signs binding supply

agreements with Commonwealth LNG

CONTRACTS A Woodside Energy subsidiary, Woodside modular approach, infrastructure for the facil-
Energy Trading Singapore, has converted its ity would mostly be constructed offsite, which
non-binding heads of agreement (HoA) deals the company says would minimise the cost and
with the US’ Commonwealth LNG into two timescale involved.
binding sale and purchase agreements (SPAs). “Our modular construction approach allows
The SPAs cover the supply of up to 2.5mn Commonwealth LNG to provide greater cost
tonnes per year (tpy) of LNG over a 20-year and schedule certainty to customers as we deliver
period from Commonwealth’s proposed export affordable, reliable, cleaner energy to meet global
terminal in Louisiana, on the US Gulf Coast. demands,” stated Commonwealth’s president
The main terms set out in the HoA, which was and CEO, Farhad Ahrabi.
announced in January 2022, remain unchanged Commonwealth LNG was originally target-
in the SPAs, Woodside said. The volume agreed ing 2020 for an FID, but the global collapse in
is at the upper end of the amount the two com- natural gas demand and prices following the
panies had first agreed to under the HoA, with onset of the coronavirus (COVID-19) pandemic
Woodside exercising the option to buy 2.5mn tpy caused the project to be delayed. Demand has
rather than 2.0mn tpy. since picked up significantly, however, reviving
First LNG deliveries under the SPAs are antic- the prospects for a new crop of proposed LNG
ipated in mid-2026. However, the deals are still export projects on the US Gulf Coast.
conditional on certain milestones being reached, Woodside also has a supply agreement in
including a final investment decision (FID) on place with another US LNG producer, Cheniere
the Commonwealth LNG export terminal. Energy, and the latest deal suggests that the com-
The terminal would be built using a modular pany is keen to further diversify its sources of
approach, and have six liquefaction trains with a LNG supply.™
combined capacity of 8.4mn tpy. Thanks to the

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