BP to supply gas to Woodside’s US LNG project
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The news: Woodside Energy has signed an agreement with BP to supply gas to its upcoming Louisiana LNG project in the US.
The numbers: Under the deal, Louisiana LNG Gas Management has committed to purchase up to 640 billion cubic feet of gas from BP on a long-term basis, with delivery beginning in 2029.
Woodside shares were down 0.25% to $20.61 in early trading on the ASX.
The context: Woodside said the agreement with BP represents the first tranche of a diversified portfolio of feedgas that will support the Louisiana LNG project, enabled by the project’s extensive interconnectivity to multiple producing basins and interconnecting pipelines.
“Louisiana LNG is a compelling investment, expected to deliver significant cash generation and create long term shareholder value. Securing this gas supply agreement is an important step for the project,” CEO Meg O’Neill said.
The announcement comes a day after Woodside made a final investment decision to develop the 16.5 million tonnes per annum Louisiana project that is expected to position it into a LNG powerhouse operating over 5% of global LNG supply.
The source: ASX
