Woodside enters LNG supply agreement with KOGAS

Australia-based gas producer Woodside has signed a long-term LNG supply agreement with Korea Gas Corporation (KOGAS), one of the world’s major players in the LNG market, it said on February 28.

Under the terms of the agreement, Woodside will supply approximately 0.5mn tonnes/year of LNG to KOGAS over a period of 10.5 years, commencing in 2026. The LNG provided to KOGAS will be sourced from uncommitted volumes across Woodside’s global portfolio, including the Scarborough project which is targeting first LNG cargo in 2026.

Woodside CEO Meg O’Neill said the agreement was significant as Woodside’s first long-term supply agreement into Korea, the world’s third-largest LNG market.

“Our LNG can help customers such as KOGAS meet their energy security needs, while also supporting regional decarbonisation goals,” she said.

“This SPA has enabled KOGAS to enlarge the customer base in the domestic power market, reinforcing our role as a leading natural gas supplier in Korea,” KOGAS CEO Choi Yeon-hye said. 

Woodside’s Pluto Train 2, the second LNG production train at the existing Pluto LNG onshore facility, will process gas from the offshore Scarborough development. Woodside and Bechtel on February 21 announced the arrival of the first three modules for the Pluto Train 2 project at the Karratha site in Western Australia.

Woodside recently announced it will sell a 15.1% non-operating participating interest in the Scarborough project to Japan's Jera for a total consideration of $1.4bn.