Woodside signs deal to supply 1 mil mt/year from Louisiana LNG to Uniper

Australia's Woodside Energy said April 17 that it signed a sale and purchase agreement to supply 1 million mt/year of LNG from its Louisiana LNG project to Germany's Uniper on a free-on-board basis for 13 years from the start of the facility, calling it an important milestone in moving its operated project toward a final investment decision.

Woodside said it also signed another SPA to supply up to 1 million mt/year LNG on an ex-ship basis from its global portfolio to the German company for delivery to Europe from the commercial operations date (COD) of Louisiana LNG over a term until 2039.

"As we continue to progress sell-down opportunities for Louisiana LNG, these agreements reinforce the project's unique advantages and its economic competitiveness," Woodside CEO Meg O'Neill said in a statement.

The sale and purchase agreements are subject to Woodside's FID on the three-train 16.5 million mt/year foundation development of Louisiana LNG.

"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," Uniper CEO Michael Lewis said separately in the statement.

Woodside said April 16 that it was in talks with Uniper about a potential LNG supply deal tied to its proposed Louisiana LNG export project as the developer nears an FID on the facility.

Earlier deals

The supply deals between Uniper and Woodside came amid commercial discussions around US LNG projects, as countries look to narrow their trade imbalances with the US, despite broad uncertainty about the potential impact of widespread tariffs announced by the White House.

Woodside has an existing supply relationship with Uniper, having signed a long-term sale and purchase agreement for 0.8 million mt/year that started in early 2023. The SPA was for supply from Woodside's global portfolio, which includes the North West Shelf LNG and Pluto LNG export projects that it operates in Australia.

Woodside's announced supply deals with Uniper followed the Australian company's announcement April 7 to sell a 40% stake in Louisiana LNG Infrastructure LLC, which owns and constructs the liquefaction infrastructure and the common user facilities, to US-based global investment firm Stonepeak.

The deal is targeted to close in the second quarter, subject to conditions that include Woodside reaching an FID on the project.

The Woodside-operated Louisiana LNG LLC, where the Australian company seeks potential strategic partners, will hold the remaining 60% of Louisiana LNG Infrastructure LLC.

The Louisiana facility was formerly called Driftwood LNG before Woodside's 2024 acquisition of the original developer Tellurian.