34 Woodside Petroleum Ltd|Annual Report 2018
Portfolio LNG marketing approach
Our LNG equity portfolio reached 8.1 Mtpa in 2018, following
the successful ramp up of Wheatstone LNG.
We manage our LNG portfolio through a mix of short-,
mid- and long-term contracts, supplied by Woodside equity
cargoes and supplemented by third-party purchases. Our
portfolio marketing approach provides us with flexibility and
positions us to meet changing buyer requirements.
We increased our mid-term contracted volumes in 2018 by
executing portfolio LNG SPAs for delivery of up to 4.3 million
tonnes (59 cargoes) over the period 2018 to 2023.
These included a heads of agreement with Uniper Global
Commodities for the supply of up to 0.6 Mtpa over a period
of four years commencing in 2019, to be supplied to markets
in Europe and Asia.
An agreement with RWE Supply & Trading GmbH (RWE)
was also finalised, which will commence in the fourth quarter
of 2020 and be primarily supplied by cargoes Woodside has
purchased from Corpus Christi LNG in Texas, USA.
At the end of 2018, more than 90% of Woodside’s expected
2019 LNG production has been committed to sales contracts.
Focus on marketing Burrup Hub growth projects
Our focus in 2019 will be on advancing marketing discussions
with several buyers to support FID for Scarborough and
Browse to NWS Project.
In late 2018, we finalised a long-term gas sale and purchase
agreement (GSPA) with Perdaman Chemicals and Fertilisers
Pty Ltd (Perdaman) for the supply of 125 TJ of gas per day for a
term of 20 years. The agreement, which is subject to a number
of conditions precedent, will commence between 2023 and
2025 and is underpinned by the Scarborough development.
We are also preparing for crude oil marketing from Greater
Enfield in 2019.
Expanding reliable pipeline gas supply for WA
Our portfolio supplier approach in Western Australia enables
us to meet customer requirements through a mix of short-,
mid- and long-term contracts from our supply sources which
now include the Pluto pipeline gas facility commissioned in
December 2018.
+Delivered 296 LNG, condensate, crude, and LPG cargoes1
+Executed several mid-term portfolio LNG sale and
purchase agreements (SPAs) to increase revenue
certainty and customer diversity
+Entered long-term domestic gas agreements with
Perdaman Chemicals and Fertilisers Pty Ltd and Alcoa of
Australia Limited
+Progress negotiations regarding long-term LNG SPAs
to position for FID on our Burrup Hub growth projects
+Secure customers and commence first deliveries from
the Pluto LNG truck loading facility
+Advance marketing discussions for gas resources
in Myanmar
+Market entry for heavy sweet crude production
from Greater Enfield
1. Includes all cargoes with Woodside equity interest.