WA-based energy producer Woodside has partnered up with oil and gas giant bp to supply natural gas to its Louisiana LNG project in the United States in a deal worth $27 billion.
Under the agreement, Louisiana LNG has committed to purchase on a long-term basis up to 640 billion cubic feet of gas from bp beginning in 2029 and spanning 40 years.
The company said the deal is the first phase of a diversified feed gas strategy, which leverages the project’s connectivity to multiple production basins and pipelines.
Woodside (ASX: WDS) chief exec Meg O’Neill said the agreement marked another milestone for the Louisiana LNG project.
“Louisiana LNG is a compelling investment, expected to deliver significant cash generation and create long-term shareholder value.
“Woodside has a long history of successful collaboration with bp. By drawing upon bp’s experience with MiQ certificates, we can access verifiably low methane intensity molecules for the Louisiana LNG project. This
supports Woodside’s goals as a member of the UN Environment Programme’s OGMP 2.0 initiative.”
GasCo will be responsible for implementing the gas sourcing strategy to support the project.
The announcement comes ahead of Woodside's annual general meeting on May 8. Interestingly, the Australasian Centre for Corporate Responsibility (ACCR), a former climate adviser to Woodside, submitted a formal statement to the company asking shareholders to vote against the election and re-election of directors.
That's in response to last year's 58% vote against the energy producer's Climate Transition Action Plan (CTAP) - purportedly the world’s only majority vote against a company climate plan.
