WOODSIDE Energy Ltd has entered into a long-term gas sale and purchase agreement (GSPA) with Perdaman Chemicals and Fertilisers Pty Ltd for the supply of pipeline gas for a term of 20 years.
The GSPA is for a quantity of approximately 125 TJ of gas per day for use in Perdaman’s proposed urea plant near Karratha. Gas will be supplied from Woodside’s portfolio and primarily sourced from Woodside’s proposed Scarborough development. The agreement is subject to a number of conditions and supply will commence between 2023 and 2025.
Execution of the GSPA follows a memorandum of understanding signed between Woodside and Perdaman in April 2018.
Woodside CEO Peter Coleman welcomed the finalisation of the GSPA and said it demonstrated the company’s commitment to delivering domestic gas to further support investment in the Pilbara region and create local jobs.
“This is a significant domestic gas sale and represents another step towards the delivery of the proposed Burrup Hub. The realisation of our vision for the hub will ensure that the world-class North West Shelf and Pluto facilities on the Burrup Peninsula are positioned to meet both domestic gas and global LNG demand for decades to come,” he said.
Perdaman is based in Western Australia and is proposing to build a two million tonne per annum urea plant on the Burrup Peninsula. Perdaman is part of the multi-national Perdaman Group.