Australia’s Woodside has entered into a new sale and purchase agreement (SPA) with Germany’s RWE for the supply of 0.84mn metric tons/year of LNG for a term of seven years starting in 2025, it said on February 19.  

The Australian company said the new SPA builds on a "strong relationship developed through existing mid-term and spot business in Asia-Pacific and the Atlantic basin". The companies had inked an LNG deal in December 2018 which came into effect in the fourth quarter of 2020 and runs till December 2022. Woodside and RWE had signed a deal in October 2017 as well. 

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Woodside executive vice president development and marketing Meg O’Neill said the signing of the SPA with RWE was further evidence of the strong market demand for LNG in the second half of this decade. “Customers are increasingly seeking to secure new energy supplies in a timeframe which supports the development of our Scarborough offshore gas resource and the expansion of the Pluto facility with the addition of a second LNG production train.” 

The SPA also provides the opportunity for Woodside and RWE to explore the potential for carbon-neutral LNG production and trading, she said. 

Chief commercial officer origination and gas supply at RWE Supply & Trading Andree Stracke said the transaction demonstrated RWE’s ongoing commitment to expanding its global LNG portfolio. 

“The volumes will continue to enable us to deliver effective LNG solutions to our customers and will provide a platform to further advance our existing business in Asia,” he said.  

Woodside and RWE signed a memorandum of understanding in October last year to discuss hydrogen-related opportunities.