WOODSIDE has made its first long-term sale of LNG to Japanese power utility JERA.
The sale and purchase agreement with JERA is for the long-term supply of liquefied natural gas (LNG) to Japan.
Woodside will supply approximately 0.4 million tonnes (six cargoes) of LNG per year over 10 years on a delivered basis, starting in April 2026.
LNG delivered to JERA under the agreement will be sourced from volumes across Woodside’s global portfolio.
The deal follows Woodside’s February announcement where it agreed to sell JERA a 15.1% non-operating participating interest in the Scarborough Joint Venture.
Woodside Executive Vice President and Chief Commercial Officer Mark Abbotsford said the execution of the agreement strengthened the commitment to explore business opportunities alongside 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,” Mr Abbotsford said.
“We understand the demand from our customers in the Asian region for reliable energy. LNG continues to be an important energy source for Japan, one which can support the country’s efforts to decarbonise.”
Woodside expects the Scarborough equity sale to JERA to be completed before the end of 2024.
