German firm books LNG from Woodside’s ‘largest growth project’

Australia’s energy giant Woodside Energy has signed two liquefied natural gas (LNG) sale and purchase agreements (SPAs) with Germany’s Uniper.

As disclosed, one deal entails the supply of LNG from the Louisiana LNG project under development on the U.S. Gulf Coast, and the other an additional quantity of natural gas from Woodside’s global portfolio through its Singaporean subsidiary.

Both deals, which are set to start in 2026, are subject to the final investment decision (FID) on the three-train 16.5 million tonnes per annum (mtpa) foundation development of Louisiana LNG.

Under the first SPA, Woodside is slated to supply 1 mtpa of LNG on a free-on-board basis to Uniper for up to 13 years from the commercial operations date (COD) of Louisiana LNG.

Woodside’s Chief Executive Officer (CEO), Meg O’Neill, noted: “Louisiana LNG is Woodside’s largest growth project. It leverages the robust US gas resource, an outstanding site, best-in-class EPC and technology partners and Woodside’s track record of successful project delivery. The addition of Atlantic Basin LNG supply to our established position in the Pacific strengthens Woodside’s portfolio and allows us to tailor contract structures based on various price indices and tenures to better meet our customers’ diverse needs.”

O’Neill pointed out that her company remains focused on delivering a reliable energy supply that will benefit partners and stakeholders for years to come in an environment of increasing demand for dependable sources of LNG, particularly in Europe.

“As we continue to progress sell-down opportunities for Louisiana LNG, these agreements reinforce the project’s unique advantages and its economic competitiveness. Uniper’s leadership in European energy markets make them an ideal counterparty, and this builds on Woodside’s existing offtake arrangements, underscoring our shared commitment to delivering value for all companies and the economies in which each operate,” said Woodside’s CEO.

Earlier this month, Woodside sold a 40% interest in Louisiana LNG to Stonepeak, which will provide 75% of project capital expenditure for the project’s foundation development on an accelerated basis in 2025 and 2026. The Australian player described this as a material step towards readiness for an FID.

Under the second deal, Woodside Energy Trading Singapore is set to deliver up to 1 mtpa of LNG on a delivered ex-ship basis from its global portfolio into Europe, starting with Louisiana LNG’s COD until 2039.

Uniper’s CEO, Michael Lewis, said: “We are very pleased to secure additional LNG supplies for our customers in Europe from a reliable LNG supplier like Woodside. This deal will support our security of supply and flexible generation strategy together with the potential development of additional gas-fired power plants in Germany to complement the renewable build-up. Woodside is one of our biggest LNG suppliers globally with a solid track record of deliveries of LNG to us from their existing projects.

“With this new project in Louisiana, we are further extending the cooperation with Woodside. Long-term LNG contracts like this contribute directly to the competitiveness of European industry. Reliable and cost-effective energy supply is a cornerstone of a strong industrial base, and deals like this help ensure our customers can count on both.”

Based on the gas demand of an industrial nation like Germany, Uniper predicts that 2 million mtpa of LNG, which is the amount secured thanks to the latest SPAs, would cover approximately 3% of the country’s total gas consumption in 2024.

This follows the confirmation of discussions regarding a potential LNG supply deal with Uniper, which Woodside disclosed yesterday, when it was shared that no final agreement was reached.