Australian Beach Energy has signed a deal with BP Singapore (bp) which will see the global energy giant purchasing all 3.75 million tonnes of Beach’s liquefied natural gas (LNG) produced through its Waitsia Gas Project Stage 2.
As dictated by a Heads of Agreement (HOA) entered by both companies, annual contract volumes and supply terms will align with provisions laid out in the North West Shelf (NWS) Gas Processing and Lifting Agreements.
When the LNG supply is due to begin will be ‘flexible’ to coincide with the completion of construction and commissioning, according to the HOA terms.
Already involved in the NWS Joint Venture, bp will take the LNG from NWS facilities in Karratha, Western Australia.
A hybrid pricing structure will see the LNG price linked to both Brent and Japan Korea Marker (JKM) price indices, with a downside price protection mechanism.
A fully termed LNG Supply and Purchase Agreement is set for the second half of the financial year 2022.