Australia’s Woodside Energy (ASX:WDS) will take up to 2.5 million tonnes per year of liquefied natural gas (LNG) exports from Commonwealth’s LNG export facility under development in Cameron Parish, Louisiana, after confirming a 20-year deal.
Key terms in the heads of agreement previously announced on 19 January 2022 remain unchanged in the deal, with first deliveries expected to start in mid-2026. The two sales and purchase agreements will become fully effective upon the satisfaction of customary conditions including an affirmative final investment decision on the project, said Woodside.
“We’re very pleased to have Woodside involved in our project,” said Commonwealth Executive Chairman Paul Varello. “Woodside is known throughout the LNG industry for its keen technical capabilities and commercial agility. These SPAs establish Woodside as a cornerstone customer and mark a major milestone in the development of Commonwealth LNG.”
Commonwealth President and CEO Farhad Ahrabi added: “Our modular construction approach allows Commonwealth LNG to provide greater cost and schedule certainty to customers as we deliver affordable, reliable, cleaner energy to meet global demands. We’re proud to have an international LNG customer of Woodside’s stature recognise these advantages and show this level of commitment.”
Woodside CEO Meg O’Neill said the agreements provided the basis for a long-term partnership with Commonwealth LNG.
“The agreements secure for Woodside low-cost LNG volumes in the Atlantic Basin in a period of expected strong demand as Europe seeks alternatives to Russian pipeline gas,” she said.
Commonwealth LNG is an 8.4 Mtpa liquefied natural gas (LNG) export terminal project located on the Calcasieu River at the Gulf of Mexico near Cameron, Louisiana.