Woodside Petroleum puts foot on new US gas supply
Woodside Petroleum has moved to further diversify its LNG supply by taking gas from a new producer within the United States.
Woodside has entered into a non-binding heads agreement that allows them to buy 2 million tonnes of LNG a year from the proposed Commonwealth gas liquefication and export terminal. The terminal will be located at the mouth of the Gulf of Mexico near Cameron in Louisiana and is expected to open in 2026.
If the deal gets finalised, it would see Woodside take nearly 25 per cent of Commonwealth LNG’s export capacity of around 8.4 millions tonnes a year over a period of 20 years. This deal would also include the option to additionally purchase 500,000 tonnes a year.
“The head of agreement secures access to competitive LNG in the Atlantic Basin and provides Woodside with the ability to build market scale through acquiring low-cost supply,” said Woodside chief executive Meg O’Neil said.
Woodside sells more than nine million tonnes of LNG an annum under short and long-term contracts.
“Commonwealth LNG represents a next generation LNG export facility designed to provide a platform for meeting the unique requirements of the next wave of LNG demand,” its website says.