Australian LNG player Woodside signed a heads of agreement with China’s energy major ENN Group for the sale of 1 million tonnes of LNG per year for a 10-year period.
The supply of volumes, from Woodside’s portfolio will start in 2025, Woodside said in a statement on Friday.
Woodside CEO Peter Coleman said the HOA builds on an October 2018 cooperation agreement, under which the two companies committed to work together to explore a broad range of potential business opportunities.
“This HOA demonstrates market support for Woodside’s proposals to expand the Pluto LNG facility and develop the Scarborough offshore gas resource as part of our vision for the Burrup Hub in Western Australia,” he said.
Woodside and ENN have built a strategic partnership as both companies pursue growth phases. ENN is aiming to grow its market share in China’s gas distribution and retailing sector, as well as internationally.
The HOA remains conditional upon the negotiation and execution of a fully termed sales and purchase agreement and obtaining all necessary approvals and a final investment decision on Scarborough.