Woodside, Viva Energy MoU: LNG supply to Australia's east coast

Woodside is exploring the opportunity to acquire regasification capacity usage rights at the terminal to regasify LNG. The MoU also provides a framework and timeline for negotiation of binding regasification capacity commitments, to be finalised in definitive agreements executed following Woodside and Viva Energy approvals prior to a final investment decision targeted for Q3 2022.
Woodside CEO Meg O’Neill welcomed the collaboration and said “Working to secure regasification capacity at Viva Energy’s proposed import terminal aligns with Woodside’s future production profile and the ongoing needs of east coast Australian customers for reliable, lower-carbon energy sources.”
Australia’s Competition and Consumer Comission and the Australian Energy Market Operator have warned the country faces a potential gas supply shortfall for its east coast market unless it negotiates pipeline limitations, and upscales supply. And Woodside believes the MoU presents an opportunity for the company to supply LNG from its Western Australian projects into the east coast gas market.
The company has recently approved a US$12Bn development of the Scarborough gas field in Western Australia and completed the acquisition of BHP’s Petroleum arm.
Viva Energy CEO Scott Wyatt said he was very pleased to be progressing this opportunity with Woodside.
“Woodside’s experience and capability in LNG supply, shipping, terminals and international gas markets will assist us in progressing the Gas Terminal Project to a final investment decision.
Last Month Viva Energy said it plans to submit an environmental effects statement to regulators by the end of 2021 and take final investment decision on the project in 2022, targetting first LNG imports in 2024.

Mr Wyatt said “Woodside’s potential participation in the Gas Terminal Project highlights the value of LNG terminals as ‘virtual pipelines’ to deliver LNG from Australia and other sources into the east coast domestic gas market. This can be achieved more efficiently and with lower environmental impact than building new pipelines to transport gas from other domestic gas sources to the south east Australian gas market.”