BAKU, Azerbaijan, October 30. Australia's Woodside Energy has signed a 20-year agreement with QatarEnergy to supply up to 3 million tonnes of liquefied natural gas (LNG) per year from its Louisiana LNG Project in the United States, the company said on Thursday.
Under the sale and purchase agreement, Woodside will supply LNG on a free-on-board basis, starting with the launch of Louisiana LNG's second production train. Volumes will increase to 3 million tonnes per annum (Mtpa) following the start-up of the third train.
Louisiana LNG is under construction near Lake Charles, Louisiana. The project's first phase comprises three production trains with a combined capacity of 16.5 Mtpa, with first LNG targeted for 2029.
Woodside CEO and Managing Director Liz Westcott said the agreement demonstrated the company's disciplined execution of its strategy.
"This landmark agreement brings together Woodside's competitive US LNG project with QatarEnergy as a customer, one of the world's leading energy companies. It is a strong vote of confidence in Louisiana LNG and represents a significant step in building the project's long-term customer base," she said.
Westcott added that the agreement builds on a previously announced supply deal with Germany's Uniper.
"Together, these contracts provide sustained revenue certainty for a material portion of Louisiana LNG production as we progress the project towards first LNG," she said.
According to the company, Louisiana LNG is an important part of Woodside's global portfolio, providing geographically diversified supply and strengthening its ability to serve customers worldwide.
The LNG supplied under the agreement will come from Woodside's share of HoldCo volumes.
