Gastech news: Commonwealth LNG and Woodside Energy ink two long-term SPAs

The deal between Woodside Energy Trading Singapore, a subsidiary of Woodside Energy, and Commonwealth LNG was officially signed 2 September, but the news was released in conjunction with Gastech 2022 in Milan, Italy.

The SPAs are for the supply of up to 2.5 mta of LNG over 20 years from Commonwealth’s LNG export facility under development in Cameron Parish, Louisiana. Key terms in the HOA previously announced 19 January 2022 remain unchanged in the binding SPAs, with first deliveries expected to commence mid-2026. The SPAs will become fully effective upon the satisfaction of customary conditions including an affirmative FID on the project. FID is targeted for Q3 2023.

Commonwealth executive chairman Paul Varello said, “These SPAs establish Woodside as a cornerstone customer and mark a major milestone in the development of Commonwealth LNG”.

Woodside chief executive 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.

Commonwealth LNG will be located on the west bank of the Calcasieu Ship Channel, with capacity to produce 8.4 mta and six 50,000-m³ storage tanks.