Woodside has entered an agreement with bp to supply gas to the Louisiana LNG project in Calcasieu Parish, US.
The agreement represents the first portion of a diverse feed gas portfolio that will support the project, and leverages the project’s extensive connectivity to various producing basins and pipelines.
Under the terms of the agreement, Louisiana LNG Gas Management (GasCo), a wholly owned subsidiary of Louisiana LNG, has committed to purchasing up to 640 billion cubic feet (bcf) of gas from bp, with deliveries to Line 200 expected to begin in 2029.
GasCo will oversee the gas sourcing strategy for the Louisiana LNG project.
Woodside CEO Meg O’Neill said: “Louisiana LNG is a compelling investment, expected to deliver significant cash generation and create long-term shareholder value. Securing this gas supply agreement is an important step for the project.
“Woodside has a long history of successful collaboration with bp. By drawing upon bp’s experience with MiQ certificates, we can access verifiably low methane intensity molecules for the Louisiana LNG project. This supports Woodside’s goals as a member in the UN Environment Programme’s OGMP 2.0 initiative.”
Woodside has announced the final investment decision (FID) to develop the $17.5bn (A$27.36bn) Louisiana LNG project, with first LNG production anticipated in 2029.
The project includes three trains with a total capacity of 16.5 million tonnes per annum (mtpa) and is expected to enable Woodside to supply approximately 24mtpa from its global LNG portfolio in the 2030s, accounting for more than 5% of the global LNG supply.
Additionally, Woodside recently signed agreements with Uniper for the supply of 1mtpa of LNG from the project and up to 1mtpa from its global portfolio, Woodside Energy Trading Singapore.
Louisiana LNG will provide 1mtpa of LNG on a free-on-board basis for up to 13 years following the start of its commercial operations.
