Woodside Energy Trading Singapore (Woodside) is negotiating a sale and purchase agreement for the supply of liquified natural gas (LNG) from Commonwealth LNG’s proposed export terminal in Louisiana, US.
Under a heads of agreement (HOA) inked today (19th Jan), Woodside will look at the potential purchase of 2.0 million tonnes per annum (mtpa) of LNG over a 20-year period.
Looking beyond this, Woodside will also have the option to purchase an additional 0.5 mtpa.
If everything goes as planned, first deliveries of the LNG are expected to begin in Q2 2026. Woodside’s offtake obligation can be reduced or eliminated as Commonwealth LNG achieves increasing thresholds and offtake commitments from other buyers.
Meg O’Neill, CEO of Woodside, said, “This HOA with Commonwealth secures access to competitive LNG in the Atlantic Basin and provides Woodside with the ability to build market scale through acquiring low-cost supply.”
Paul Varello, founder and CEO of Commonwealth LNG, added, “Woodside is known throughout the industry for its keen technical oversight and commercial agility. This HOA is testament that Commonwealth’s approach to lowering the cost of LNG produced in the US is gaining prominent support.”