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Woodside signs LNG agreement

Woodside Energy has signed a sales and purchase agreement (SPA) with Pilgangoora Operations for the supply of domestic LNG from the Pluto Truck Loading Facility.

Supply under the SPA will commence in late 2024 for a period of five years and the average volume to be supplied is 3.4 terajoules per day.

The LNG is to be used at Pilbara Minerals’ Pilgangoora lithium operation, located 300km east of Karratha, where it will replace diesel for power generation.

Woodside chief executive officer Meg O’Neill said the SPA reflected the role of LNG in the energy transition.

“The supply of LNG to the Pilgangoora operation assists Pilbara Minerals to reduce power emissions intensity from its operations by reducing diesel use as it continues to supply the raw materials that are vital in the production of lithium batteries, used in consumer electronics, electric vehicles, and for large-scale energy storage,” O’Neill said.

“We are also pleased to be partnering with Pilbara Minerals, another important Western Australian resources company whose operations, like Woodside’s, provide direct jobs and contracting opportunities for local businesses in the northwest.

“This agreement further demonstrates Woodside’s commitment to Western Australia’s domestic gas supply from the Pluto project.”

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