Woodside has signed a sale and purchase agreement (SPA) with JERA for the long-term supply of liquefied natural gas (LNG) to Japan.

Under the SPA, Woodside will supply approximately 0.4 million tonnes (six cargoes) of LNG per year over 10 years on a delivered basis, commencing in April 2026.

LNG delivered to JERA under the SPA will be sourced from volumes across Woodside’s global portfolio.

The execution follows the announcement in February whereby Woodside reached agreement for the sale to JERA of a 15.1% non-operating participating interest in the Scarborough Joint Venture.

Woodside Executive Vice President and Chief Commercial Officer Mark Abbotsford said the execution of the SPA strengthened the commitment to explore business opportunities alongside JERA.

“This LNG offtake agreement is Woodside’s first long-term sale to JERA from our global portfolio and delivers on one of the core elements of our strategic relationship outlined earlier this year.

“We understand the demand from our customers in the Asian region for reliable energy. LNG continues to be an important energy source for Japan, one which can support the country’s efforts to decarbonise.” Woodside expects the Scarborough equity sale to JERA to be completed before the end of 2024.

About Woodside Energy

Woodside Energy is a global energy company, founded in Australia with a spirit of innovation and determination. We provide energy the world needs to heat and cool homes, keep lights on and enable industry. For more than 35 years, the North West Shelf has been delivering natural gas to customers in Australia and around the world.
We understand the importance of supporting strong local content, economic outcomes, positive social contribution impacts, and sustainable local supply chains that deliver benefits to our host communities. Woodside Energy, as operator of the North West Shelf Project and Pluto LNG, continues to focus on safe and reliable operations and the delivery of community development outcomes.

About JERA

Established in 2015, JERA is an equal joint venture of two major Japanese electric power companies, TEPCO Fuel & Power Incorporated and Chubu Electric Power Company and produces about 30% of all electricity in Japan. JERA is an energy company with global reach that has strength in the entire energy supply chain, from participation in LNG upstream projects and fuel procurement, through fuel transportation to power generation. JERA, which stands for Japan’s Energy for a New Era, will take on the challenge of achieving net zero CO2 emissions from its domestic and overseas businesses by 2050 and is supporting an energy transition in an environmentally and socially responsible manner.

(1) Woodside uses the term ‘lower carbon services’ to describe technologies such as carbon capture, utilisation and storage (CCUS) or offsets that could be used by customers to reduce their net greenhouse gas emissions.
(2) The sale and purchase agreement is with JERA Scarborough Pty Ltd which is a wholly owned subsidiary of JERA Co., Inc.
(3) Woodside’s equity of 74.9% in the Scarborough JV is subject to completion of the transaction with LNG Japan announced on 8 August 2023, expected in the first quarter of 2024 as well as completion of the transaction with JERA expected in the second half of 2024.