Woodside signs 10-year LNG supply deal with JERA

Global energy company Woodside has signed a liquefied natural gas (LNG) sale and purchase agreement with JERA.

Announced today (18^th September), the deal will see Woodside supply JERA with around 0.4 million tonnes of LNG per annum over a 10-year period.

The volume is equivalent to around six cargoes a year. Delivery will begin in April 2026.

News of the deal follows Woodside earlier this year (February 2024) agreeing to sell a 15.1% non-operating participating interest in its Scarborough for an estimated $1.4m.

Read more: Woodside agrees to sell 15.1% Scarborough stake to JERA

Woodside expects the Scarborough equity sale to be completed before the end of 2024.

Mark Abbotsford, Executive Vice-President and Chief Commercial Officer of Woodside, said the execution of the deal strengthens the commitment to explore business opportunities alongside JERA.

“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 that can support the country’s efforts to decarbonise.”

The Scarborough field is located around 375km off the coast of Western Australia, and the reservoir contains less than 0.1% carbon dioxide. Scarborough gas will be processed at the Pluto LNG, where Woodside is currently constructing Pluto Train 2.

Read more: Woodside Scarborough Energy project half complete 

The Scarborough gas field will be developed through new offshore facilities connected by pipeline to a second LNG train (Pluto Train 2) at the existing Pluto LNG onshore facility.

Once fully developed, the project will include a floating production unit with eight wells drilled in the initial phase and 13 wells drilled over the life of the Scarborough gas field. All wells will be tied back to a semi-submersible FPU moored in 950m of water close to the Scarborough gas field.

Around five million tonnes per annum of Scarborough gas will be processed through Pluto Train 2, with up to three million tonnes per annum processed through the existing Pluto Train 1.