Woodside Energy has signed a 20-year agreement to supply QatarEnergy with up to 3 million tons a year of liquefied natural gas from its Louisiana LNG project, the Australian company said on Thursday.
The sale and purchase agreement was disclosed in a filing to the Australian Securities Exchange on October 29.
QatarEnergy, one of the world’s largest LNG exporters, has been seeking supply from the United States as the Iran war disrupts shipping through the Strait of Hormuz, Reuters reported.
Supply from Train 2
Woodside will deliver the LNG on a free-on-board basis from the start-up of the project’s second train.
Volumes will rise to 3 million tons a year once the third train starts operating, the company said.
Woodside will supply the cargoes through its unit Woodside Energy (LA) Investments LLC, from its share of the project’s volumes.
Louisiana LNG is under construction near Lake Charles, Louisiana. The foundation project has three trains with combined capacity of 16.5 million tons a year and is targeting first LNG in 2029.
Second major buyer
“This landmark agreement brings together Woodside’s competitive US LNG project with QatarEnergy as a customer, one of the world’s leading energy companies,” said Liz Westcott, chief executive officer and managing director of Woodside.
Westcott said the deal builds on an earlier supply agreement with Germany’s Uniper. Together, the two contracts provide revenue certainty for a material portion of the plant’s output, she said.
Reuters reported on October 23 that the two companies were in talks over a deal of up to 3 million tons a year. QatarEnergy has also agreed a long-term deal with Cheniere Energy for 4 million tons a year, according to Reuters.
