Woodside and Viva Energy sign LNG agreement

Australian energy giant Woodside and compatriot energy company Viva Energy have agreed to discuss capacity rights at Viva Energy’s proposed LNG regasification terminal (the Gas Terminal Project).

The parties have entered into a memorandum of understanding (MoU) to further talk the Gas Terminal Project in Geelong, Victoria.

Under the MoU, Woodside will discuss with Viva Energy the opportunity to acquire regasification capacity usage rights at the terminal to regasify LNG. The proposed LNG regasification terminal could enable Woodside to supply LNG to the east coast Australian market.

The agreement specifically provides a framework and timeline to negotiate binding regasification capacity commitments. The companies will finalise this in definitive agreements executed following their approvals prior to a final investment decision. The FiD will take place in the third quarter of 2022.

Woodside CEO Meg O’Neill welcomed the collaboration with the company on potential LNG supply.

“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.”

In addition, Viva Energy CEO Scott Wyatt is happy to progress this opportunity with Woodside.

“Woodside’s experience and capability (…) will assist us in progressing the Gas Terminal Project to a final investment decision.”

“Woodside’s potential participation in the Gas Terminal Project highlights the value of LNG terminals as ‘virtual pipelines’ to deliver LNG from Australia and other sources into the east coast domestic gas market. This can be achieved more efficiently and with lower environmental impact than building new pipelines to transport gas from other domestic gas sources to the southeast Australian gas market,” he said.