Under the terms of the MoU, Woodside claims that it will provide approximately 125 terajoules of domestic gas per day, which will be used in Perdaman’s proposed 2 million tpy urea plant on the Burrup Peninsula. Perdaman is based in Western Australia, and specialises in urea production.
Natural gas will be provided from Woodside’s portfolio of domestic gas underpinned by the proposed Scarborough development. Supply of the gas will begin in the early 2020s for a 20 – 25 year period.
In the statement, Woodside claims that both parties have committed to negotiate in good faith a gas sale and purchase agreement with the terms of the MoU this year.
Peter Coleman, the CEO of Woodside, said that the MoU is a further demonstration of Woodside’s commitment to finding innovative ways to power the Pilbara and support local manufacturing and exports for WA.
Coleman said: “Supplying domestic gas from our portfolio will underpin a fresh wave of investment in the Pilbara region.
“Our Burrup Hub projects can support the economic diversification of the region in the years ahead and ensure we are positioned to meet long-term global LNG demand.”
Woodside claims that it is also committed to working with the State Government to provide local jobs.