Australian energy major Woodside has signed a sale and purchase agreement (SPA) with Korea Gas Corporation (KOGAS) for the long-term supply of liquefied natural gas (LNG) to Korea.
Specifically, the SPA provides for the supply of approximately 0.5 million tons per annum of LNG for a period of 10.5 years on a delivered basis, commencing in 2026, subject to customary conditions precedent.
According to Woodside, LNG delivered to KOGAS under the SPA will be sourced from uncommitted volumes across Woodside’s global portfolio, including the Scarborough Energy Project, which is targeting the first LNG cargo in 2026.
Woodside CEO Meg O’Neill said the SPA was significant as Woodside’s first long-term supply agreement into Korea, noting: “Our LNG can help customers such as KOGAS meet their energy security needs, while also supporting regional decarbonization goals.”
KOGAS President and CEO Choi Yeon-hye commented: “This SPA has enabled KOGAS to enlarge the customer base in the domestic power market, reinforcing our role as a leading natural gas supplier in Korea. By leveraging this SPA, we look forward to further expanding our business opportunities with Woodside in the LNG industry.”
To remind, this February, Woodside’s Scarborough energy project reached a new milestone with the arrival of the first three Pluto Train 2 modules in Karratha. These modules are three of a total of 51 that will be shipped to the site from the module yard to form Pluto Train 2, which will be the second LNG production train at the existing Pluto LNG onshore facility.
Additionally, the Australian player executed a binding sale and purchase agreement with Japan’s energy major JERA for the sale of a 15.1% non-operating participating interest in the Scarborough JV, covering the Scarborough gas field and associated offshore and subsea infrastructure, for an estimated total consideration of $1.4 billion.
Located approximately 375 km off the coast of Western Australia, the Scarborough field’s development will include installing a floating production unit with eight wells drilled in the initial phase and thirteen wells drilled over the life of the field. The gas from the Scarborough field will be processed at the Pluto LNG facility, where the company is constructing Pluto Train 2.