Woodside Power Group Ltd. has signed a sale and buy settlement (SPA) with JERA Co. Inc. for the long-term provide of liquefied pure gasoline (LNG) to Japan.
Below the SPA, Woodside will provide roughly 0.4 million metric tons, or six cargoes, of LNG per yr over 10 years on a delivered foundation, starting April 2026, the corporate stated in a information launch.
LNG delivered to JERA below the SPA can be sourced from volumes throughout Woodside’s world portfolio, in line with the discharge.
- Advertisement -
Woodside Government Vice President and Chief Industrial Officer Mark Abbotsford stated that the execution of the SPA “strengthened the dedication to discover enterprise alternatives alongside JERA”.
“This LNG offtake settlement is Woodside’s first long-term sale to JERA from our world portfolio and delivers on one of many core parts of our strategic relationship outlined earlier this yr,” Abbotsford stated.
“We perceive the demand from our prospects within the Asian area for dependable power. LNG continues to be an essential power supply for Japan, one which may help the nation’s efforts to decarbonize,” he added.
In February, Woodside introduced the sale of a non-operating collaborating curiosity within the Scarborough three way partnership (JV) to JERA Scarborough Pty Ltd, an entirely owned subsidiary of JERA for an estimated whole consideration of $1.4 billion.
The full consideration consists of the acquisition worth of roughly $740 million plus a reimbursement to Woodside for JERA’s share of expenditure incurred from the transaction efficient January 1, 2022.
The completion of the transaction is topic to customary circumstances, together with International Funding Evaluate Board approval, Nationwide Offshore Petroleum Titles Administrator approvals, Western Australian Authorities approvals and satisfaction of the requisite financing approvals, Woodside stated in an earlier assertion.
Woodside stated it expects the Scarborough fairness sale to JERA to be accomplished earlier than the tip of the yr.
The Scarborough Power Venture includes the Scarborough Joint Enterprise, the Pluto Practice 2 Joint Enterprise and modifications to Pluto Practice 1 to course of Scarborough gasoline. The Scarborough Joint Enterprise consists of the Scarborough area and related offshore and subsea infrastructure, in line with the assertion.
The Scarborough area is situated roughly 233 miles (375 kilometers) off the coast of Western Australia and the reservoir comprises lower than 0.1 p.c carbon dioxide. Scarborough gasoline can be processed on the Pluto LNG facility, the place Woodside is at present developing Pluto Practice 2.
The transaction consists of an choice for JERA to amass a 15.1 p.c non-operating collaborating curiosity within the Thebe and Jupiter fields, in addition to a non-binding settlement that outlines a long-term collaboration to pursue alternatives for added feed gasoline and joint funding in offshore gasoline fields for future tieback to the Pluto LNG facility by way of Scarborough infrastructure.
Woodside stated that it additionally signed a non-binding settlement to supply carbon administration providers to help JERA in assembly its obligations related to its share of carbon emissions from the Scarborough JV.
Following completion of the sale of fairness to JERA, Woodside will maintain a 74.9 p.c curiosity within the Scarborough JV and can stay as operator.
To contact the writer, electronic mail rocky.teodoro@rigzone.com
What do you suppose? We’d love to listen to from you, be part of the dialog on the
Rigzone Power Community.
The Rigzone Power Community is a brand new social expertise created for you and all power professionals to Communicate Up about our business, share data, join with friends and business insiders and interact in knowledgeable group that can empower your profession in power.
