Woodside, China's ENN Sign LNG Deal

Australian Woodside has signed a heads of agreement (HoA) with China’s ENN Group for the sale of 1mn metric tons/year of LNG for a period of 10 years, commencing in 2025, it said April 5.

The HoA, signed at LNG2019 in Shanghai, builds on an October 2018 cooperation agreement, under which the two companies committed to work together to explore a broad range of potential business opportunities.

“This HoA demonstrates market support for Woodside’s proposals to expand the Pluto LNG facility and develop the Scarborough offshore gas resource as part of our vision for the Burrup Hub in Western Australia,” Woodside CEO Peter Coleman said.

The HoA remains conditional upon the negotiation and execution of a fully termed sales and purchase agreement and obtaining all necessary approvals and a final investment decision on Scarborough, Woodside said.

ENN Group last year officially commissioned the first phase of the Zhoushan LNG import terminal, which received its maiden cargo in August 2018. The 3mn mt/yr Zhoushan LNG receiving terminal is the first large-scale privately-owned terminal approved by China's National Energy Administration. The second phase of the terminal is expected to be completed by 2021, hiking the capacity to 5mn mt/yr.