Australia's Woodside Petroleum signs LNG supply deal with RWE

FILE PHOTO: The logo for Woodside Petroleum is seen on a promotional poster on display at a briefing for investors in Sydney, Australia, May 23, 2018. REUTERS/David Gray

(Reuters) - Woodside Petroleum said on Friday it had signed an agreement to supply liquefied natural gas (LNG) to wholesale energy trader RWE Supply & Trading GmbH for a term of seven years, starting in 2025.

The agreement, signed through unit Woodside Energy Trading Singapore Pte, is for supply of 0.84 million tonnes of LNG per year from the company’s global portfolio.

Australia’s biggest independent gas producer says the agreement underscores expectations of strong market demand for LNG in the second half of the decade.

Woodside said customers were seeking new energy supplies in a timeframe that supports development of its Scarborough project, as well as expansion of its Pluto facility.

By the second half of 2021, a final investment decision is expected on Woodside’s Scarborough gas project in Western Australia, as well as for expansion of its Pluto LNG processing train.

“This agreement with RWE is another demonstration of the momentum we are gathering ahead of our targeted FID on Scarborough and Pluto Train 2 in the second half of this year,” said Meg O’Neill, executive vice president of development and marketing.

In October, Woodside and the Germany-headquartered RWE had also signed a memorandum of understanding to discuss mutually beneficial hydrogen-related opportunities.

Reporting by Arundhati Dutta in Bengaluru. Editing by Gerry Doyle