Woodside Power Group Ltd has secured a sale and buy settlement (SPA) with Korea Gasoline Company (KOGAS) to provide liquefied pure fuel (LNG) to Korea.
The settlement is for the provision of roughly 0.5 million metric tons every year of LNG for a interval of 10.5 years on a delivered foundation beginning in 2026, topic to customary situations precedent.
The LNG might be sourced from uncommitted volumes throughout Woodside’s world portfolio, together with the Scarborough Power Undertaking, which is focusing on its first LNG cargo in 2026, the corporate mentioned in a information launch Wednesday.
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Based on Woodside CEO Meg O’Neill, that is Woodside’s first long-term provide settlement into Korea, the world’s third largest LNG market.
“Woodside is happy to be a long-term provider of LNG to KOGAS, a number one world vitality firm and one of many world’s largest LNG importers”, O’Neill mentioned. “This settlement is additional demonstration of ongoing sturdy demand for Woodside’s merchandise from main vitality clients in our area”.
“Our LNG will help clients reminiscent of KOGAS meet their vitality safety wants, whereas additionally supporting regional decarbonization targets”, she added.
“This SPA has enabled KOGAS to enlarge the shopper base within the home energy market, reinforcing our function as a number one pure fuel provider in Korea”, KOGAS President and CEO Choi Yeon-hye mentioned. “By leveraging this SPA, we sit up for additional increasing our enterprise alternatives with Woodside within the LNG trade”.
Based on the discharge, KOGAS was established in 1983 and is likely one of the world’s largest LNG consumers. The corporate imports LNG primarily from Australia, the USA and the Center East. KOGAS can also be engaged within the abroad upstream sector, LNG manufacturing tasks, and the downstream sector by 38 tasks in 20 nations.
That is the second LNG deal that Woodside has signed prior to now week. Earlier, the Perth-based firm and Japan’s JERA Co., Inc. entered right into a non-binding heads of settlement for the sale and buy of six liquefied pure fuel (LNG) cargoes on a delivered ex-ship foundation per yr for 10 years beginning in 2026 from Woodside’s world portfolio.
Woodside can also be promoting a non-operating taking part curiosity within the Scarborough three way partnership (JV) to JERA Scarborough Pty Ltd, a completely 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. Completion of the transaction is anticipated within the second half.
The Scarborough area is positioned roughly 233 miles (375 kilometers) off the coast of Western Australia and the reservoir accommodates lower than 0.1 % carbon dioxide. Scarborough fuel might be processed on the Pluto LNG facility, the place Woodside is at present establishing Pluto Practice 2.
Woodside on Tuesday posted $1.7 billion in web revenue for 2023, down 74 % in comparison with 2022 as weaker oil and fuel costs and better prices offset elevated gross sales and manufacturing. Nevertheless, its concentrate on LNG paid off because it produced an organization document of 187.2 million barrels of oil equal (MMboe) in 2023, in response to a separate information launch.
To contact the writer, electronic mail rocky.teodoro@rigzone.com
