July 11, 2024 [Storage Terminals Magazine]- Woodside has signed a sale and purchase agreement with CPC Corporation, Taiwan for the long-term supply of liquefied natural gas to Taiwan. Under the SPA, Woodside will supply approximately 6 million tonnes of LNG on a delivered basis over 10 years, commencing in July 2024. Additionally, Woodside may deliver approximately 8.4 million tonnes of LNG to CPC for a further 10 years, from 2034 to 2043, subject to conditions and agreement on terms for this period. The LNG delivered to CPC under the SPA will be sourced from volumes across Woodside’s global portfolio.
Woodside CEO Meg O’Neill welcomed the SPA, marking the company’s first long-term agreement for sales to Taiwan. She stated, ““This agreement with CPC for long-term supply to Taiwan is a first for Woodside and another demonstration of the ongoing demand for Australian LNG in Asian markets. It also reinforces the value our customers place on Woodside’s ability to maintain safe and reliable supply of energy into the 2030s.”
The deal reflects Woodside’s strategic focus on expanding its presence in key Asian markets and underscores the importance of LNG as a transitional energy source in the region. Taiwan, which is aiming to reduce its carbon footprint and increase energy security, views LNG as a critical component in its energy mix. The long-term supply agreement aligns with Taiwan’s energy policy goals, ensuring a steady and reliable source of LNG to meet its growing energy needs.
CPC Corporation, Taiwan, a state-owned petroleum, natural gas, and gasoline company, has been instrumental in the development of Taiwan’s energy infrastructure. By securing this long-term supply agreement with Woodside, CPC aims to enhance the stability of Taiwan’s energy supply and support the country’s efforts to transition towards cleaner energy sources.
The LNG supplied under this agreement will contribute to reducing Taiwan’s reliance on coal and oil, thereby lowering greenhouse gas emissions and supporting global climate goals. The SPA highlights the collaborative efforts between Woodside and CPC to address energy security and environmental sustainability.
With this agreement, Woodside continues to demonstrate its leadership in the LNG market, leveraging its expertise and robust portfolio to meet the evolving needs of its customers and contribute to a more sustainable energy future.
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