Commonwealth LNG signs two SPAs with Woodside, says LNG Industry.
Conversion of their non-binding heads of agreement
Commonwealth LNG, a subsidiary of Commonwealth Projects (Commonwealth), and Woodside Energy Trading Pte Ltd, a subsidiary of Woodside Energy Group Ltd (Woodside), have announced the conversion of their non-binding heads of agreement (HOA) into two binding LNG sale and purchase agreements (SPAs), signed 2 September 2022.
The SPAs are for the supply of up to 2.5 million tpy of LNG over 20 years from Commonwealth’s LNG export facility under development in Cameron Parish, Louisiana, US. Key terms in the HOA previously announced on 19 January 2022 remain unchanged in the binding SPAs, with first deliveries expected to commence in mid-2026.
Affirmative final investment decision (FID)
The SPAs will become fully effective upon the satisfaction of customary conditions including an affirmative final investment decision (FID) on the project.
“We’re very pleased to have Woodside involved in our project,” said Commonwealth Executive Chairman, Paul Varello. “Woodside is known throughout the LNG industry for its keen technical capabilities and commercial agility. These SPAs establish Woodside as a cornerstone customer and mark a major milestone in the development of Commonwealth LNG.”
Commonwealth President and CEO, Farhad Ahrabi, added: “Our modular construction approach allows Commonwealth LNG to provide greater cost and schedule certainty to customers as we deliver affordable, reliable, cleaner energy to meet global demands. We’re proud to have an international LNG customer of Woodside’s stature recognise these advantages and show this level of commitment.”
Woodside CEO, Meg O’Neill, said the agreements provided the basis for a long-term partnership with Commonwealth LNG.
“The agreements secure for Woodside low-cost LNG volumes in the Atlantic Basin in a period of expected strong demand as Europe seeks alternatives to Russian pipeline gas,” she said.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: SP Global