Woodside inks new supply deal

Petroleum giant will supply up to 1.5m tonnes of LNG to Chubu Electric.

Woodside Petroleum (WPL) has inked a sales and purchase agreement with Chubu Electric Power Co. to supply up to 1.5 million tonnes of liquefied natural gas (LNG) over a three year period starting in April.

In a statement to the Australian Securities Exchange, Woodside said the LNG provided to Chubu will be sourced mainly from previously uncommitted volumes from Woodside-operated Pluto LNG.

Other terms of the agreement are commercial-in-confidence, the group said, adding that the latest in a line of long-term relationships with major Japanese energy buyers.

"The agreement demonstrates the importance of Pluto LNG volumes in meeting growing regional demand for natural gas and also Woodside’s increasingly diverse LNG purchasing, sales and shipping arrangements," Woodside chief executive officer Peter Coleman said.