Woodside and JERA Ink Long-Term LNG Supply Agreement
September 18, 2024
Australia’s Woodside has signed a sale and purchase agreement (SPA) with Japan’s JERA for the long-term supply of liquefied natural gas (LNG) to Japan.
Under the SPA, Woodside will supply approximately 0.4 million tonnes (six cargoes) of LNG per year over 10 years on a delivered basis, starting in April 2026.
LNG delivered to JERA under the SPA will be sourced from volumes across Woodside’s global portfolio.
The execution follows the announcement in February whereby Woodside reached agreement for the sale to JERA of a 15.1% non-operating participating interest in the Scarborough Joint Venture.
Woodside expects the Scarborough equity sale to JERA to be completed before the end of 2024.
“This LNG offtake agreement is Woodside’s first long-term sale to JERA from our global portfolio and delivers on one of the core elements of our strategic relationship outlined earlier this year.
“We understand the demand from our customers in the Asian region for reliable energy. LNG continues to be an important energy source for Japan, one which can support the country’s efforts to decarbonize,” said Mark Abbotsford, Woodside’s Executive Vice President and Chief Commercial Officer.
