Australian LNG player Woodside has entered into a long-term gas sale and purchase agreement (GSPA) with Perdaman Chemicals and Fertilisers for the supply of pipeline gas for a term of 20 years.
The deal is for a quantity of approximately 125 Tj of gas per day for use in Perdaman’s proposed urea plant, Woodside said.
Gas will be supplied from Woodside’s portfolio and primarily sourced from Woodside’s proposed Scarborough development.
The agreement is subject to a number of conditions and supply will commence between 2023 and 2025.
Execution of the GSPA follows a memorandum of understanding signed between Woodside and Perdaman in April 2018.
Woodside CEO Peter Coleman said, “this is a significant domestic gas sale and represents another step towards the delivery of the proposed Burrup Hub.”
Perdaman is based in Western Australia and is proposing to build a two million tonne per annum urea plant on the Burrup Peninsula.