Woodside Energy has entered into a flexible long-term sale and purchase agreement (SPA) that will see the company providing liquified natural gas (LNG) into the European market as an alternative to Russian gas.
The agreement has been entered into with German company Uniper Global Commodities.
Woodside has agreed to supply LNG from its global portfolio to Europe, including Germany, for a term up until 2039. This supply will commence at the beginning of next year.
CEO of Woodside Meg O’Neill said that the agreement reflects the interconnected nature of the LNG trade in the Atlantic and Pacific basins, stating that this is increasing in response to global markets trying to adapt to energy security challenges.
O’Neill also touched on ongoing unease with Russian resources.
“Woodside is pleased that this latest agreement with Uniper will provide a new source of LNG for consumers in Europe who are seeking alternatives to Russian gas,” she said.
The SPA will see Woodside supplying up to 12 cargoes per year of LNG – approximately 0.8 million tonnes, or 1 billion cubic metres.
Uniper Group CEO Klaus-Dieter Maubach said that the agreement secures LNG supplies at an important for the company’s European customers.
“It will support our security of supply strategy together with the development of our LNG terminal in Wilhelmshaven,” Maubach said.
Maubach also acknowledged Uniper’s existing relationship with Woodside.
“Woodside is one of our biggest LNG suppliers in Asia and we are pleased to extend the cooperation with Woodside to Europe with this deal,” he said.
Subscribe to Oil and Gas Today for the latest project and industry news.