Woodside signs domestic LNG supply deal with Pilbara Minerals

Woodside has entered into an agreement with Pilbara Minerals' subsidiary, Pilgangoora Operations, for the supply of LNG from the Pluto truck-loading facility in Western Australia, it said on December 21.

Supply under the agreement will start in the fourth quarter of 2024 for five years. The average volume to be supplied is 3.4 terajoules/day. The LNG is to be used at Pilbara Minerals’ Pilgangoora lithium operation, located 300 km east of Karratha. The purpose is to replace diesel with LNG for power generation, aiming to reduce emissions from the lithium operation.

“The supply of LNG to the Pilgangoora operation assists Pilbara Minerals to reduce power emissions intensity from its operations by reducing diesel use as it continues to supply the raw materials that are vital in the production of lithium batteries, used in consumer electronics, electric vehicles, and for large-scale energy storage,” Woodside CEO Meg O’Neill said.

Woodside recently loaded the 1,000th trailer of LNG from the Pluto LNG truck loading facility. The truck-loading facility was opened in 2019 and is capable of loading up to 200,000 tonnes/year of LNG, displacing up to 300mn liters of diesel, according to Woodside.

The Woodside-operated Pluto LNG truck loading facility is a distribution hub allowing the transport of clean and reliable LNG fuel across Western Australia for use in remote power generation and heavy transport for local mining companies and communities.