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Australia's Woodside Energy signs LNG deal with Germany's RWE

Sydney (Platts)--31 Oct 2017 454 am EDT/854 GMT


Australian oil and gas company Woodside Energy has signed a sales agreement with Germany's RWE for the delivery of up to a dozen LNG cargoes by the end of the decade, a spokeswoman for the company said Tuesday.

"This agreement illustrates further diversification of Woodside's buyer relationships and the increasing interaction between Asia-Pacific and Atlantic LNG participants," Woodside CEO Peter Coleman said in an emailed statement.

The portfolio LNG sales agreement is for the delivery of up to 12 cargoes between April 2018 and March 2020.

Woodside, which produces LNG in Western Australia at the North West Shelf, Pluto LNG and Wheatstone LNG projects, would not comment on the commercial details of the deal.

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In the company's half-year report released earlier in the year, Woodside said that 88% of its LNG production this year was committed under short, medium and long-term oil-linked contracts, with the remainder available for spot sales.

In the first half of the year, the breakdown of sales was 77% under long-term contracts, 14% under short- and mid-term deals, and 9% spot.

At the end of H1, 83% of the company's expected LNG production in 2018 was committed under oil-linked contracts.

The company's 90%-owned Pluto LNG project delivered 31 cargoes in H1, comprising about 2.3 million mt of LNG. Over the same period, its one-sixth-owned North West Shelf project delivered 125 cargoes with about 8 million mt of LNG.

Woodside also has a 13% interest in the 8.9 million mt/year Wheatstone LNG project, which had its first train begin production earlier this month. RWE was not available for comment.

--Nathan Richardson, newsdesk@spglobal.com

--Edited by E Shailaja Nair, shailaja.nair@spglobal.com




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