Woodside pens LNG supply deal with Japan's JERA
Australia’s Woodside Energy has signed a sale and purchase agreement (SPA) with JERA for the long-term supply of LNG to Japan, the company announced on September 18.
Under the SPA, Woodside will supply approximately 0.4mn tonnes/year (six cargoes) of LNG over 10 years on a delivered basis, starting in April 2026.
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This execution follows a February announcement where Woodside agreed to sell a 15.1% non-operating participating interest in the Scarborough joint venture to JERA.
“This LNG offtake agreement is Woodside’s first long-term sale to JERA from our global portfolio and delivers on one of the core elements of our strategic relationship outlined earlier this year,” said Woodside executive vice president and chief commercial officer Mark Abbotsford.
“We understand the demand from our customers in the Asian region for reliable energy. LNG remains an important energy source for Japan, supporting the country’s decarbonisation efforts,” Abbotsford added.
Woodside recently signed a definitive agreement to acquire US-based LNG company Tellurian, including its owned and operated Driftwood LNG, for $1.2bn, including debt.
Driftwood LNG is a fully permitted, pre-final investment decision (FID) development located near Lake Charles, Louisiana. The development plan includes five LNG trains across four phases, with a total permitted capacity of 27.6mn tonnes per year. The foundation development covers Phase 1 (11mn tonnes/year) and Phase 2 (5.5mn tonnes/year). Woodside is targeting FID readiness for Phase 1 of Driftwood LNG in the first quarter of 2025.