Woodside Energy has announced that it has signed a sales and purchase agreement (SPA) with Pilgangoora Operations, a subsidiary of Pilbara Minerals, for the supply of domestic LNG from its Pluto truck loading and LNG facility.
Woodside says the LNG will be supplied on an ex-works basis from the facility, which is located on the Burrup Peninsula in Western Australia.
Supply under the SPA will commence in the fourth quarter of 2024 for a period of five years. Woodside says the average volume to be supplied is 3.4 terajoules per day.
The LNG is to be used at Pilgangoora’s lithium operation, located 300 kilometres east of Karratha, where it will replace diesel for power generation.
Woodside says Pilbara’s Pilgangoora operation is one of the world’s largest hard rock lithium deposits.
Woodside CEO Meg O’Neill says the SPA is a demonstration of the role LNG can play 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 says.
"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 north west.
"This agreement further demonstrates Woodside’s commitment to Western Australia’s domestic gas supply from the Pluto project."
