Under the SPA, Woodside will supply approximately 0.4 million tonnes (six cargoes) of LNG per year over 10 years on a delivered basis, commencing in April 2026.
LNG delivered to JERA under the SPA will be sourced from volumes across Woodside’s global portfolio.
The execution follows the announcement in February whereby Woodside reached agreement for the sale to JERA of a 15.1% non-operating participating interest in the Scarborough Joint Venture.
Woodside Executive Vice President and Chief Commercial Officer Mark Abbotsford said the execution of the SPA strengthened the commitment to explore business opportunities alongside JERA.
“This LNG offtake agreement is Woodside’s first long-term sale to JERA from our global portfolio and delivers on one of the core elements of our strategic relationship outlined earlier this year.
“We understand the demand from our customers in the Asian region for reliable energy. LNG continues to be an important energy source for Japan, one which can support the country’s efforts to decarbonize.”
Woodside expects the Scarborough equity sale to JERA to be completed before the end of 2024.
