An agreement has been entered into between Australia liquefied natural gas (LNG) pioneer Woodside Energy (Woodside) and Viva Energy (Viva) which could see LNG supplied to the east coast of Australia.
Taking the form of a Memorandum of Understanding (MoU), the agreement will see the companies discussing the opportunity to provide Viva Energy with regasification capacity usage rights to regasify LNG at Viva’s proposed LNG regasification terminal (the Gas Terminal Project).
Located in Geelong, Victoria, the terminal could supply LNG to the east coast, which is set to experience a shortfall from the mid-2020’s.
Labelling it a ‘milestone’ for the Australian gas industry, Meg O’Neill, CEO, Woodside, said, “Our MoU with Viva Energy presents an opportunity for Woodside to supply reliable, cost-competitive LNG from our Western Australian projects and global portfolio into the east coast gas market, which is predicted to face a shortfall in coming years.”
Following initial discussions, the agreement is expected to be finalised ahead of a final investment decision for the third quarter of 2022.