Woodside secures LNG deal in Indonesia

Energy giant Woodside Petroleum has inked an agreement for the supply of liquefied natural gas to an Indonesian government-owned enterprise.

Perth-based Woodside will supply LNG to PT Pertamina from 2019, with initial quantities ramping up to about 600,000 tonnes per annum from 2022 to 2034, with the option to increase that output to 1.1mtpa from 2024 to 2038.

Pertamina is an oil and gas company owned by the Indonesian government.

Woodside will supply the LNG from its global portfolio.

Chief executive Peter Coleman welcomed the sale and purchase agreement with a respected company in a competitive LNG market.

“Our track record as a reliable supplier of LNG and the proximity of our key sources of LNG to Indonesia were key to achieving this deal,” he said.

“As more regional buyers enter the market, we are well placed to become the supplier of choice.”

Woodside shares were 1.1 per cent lower to $31.50 each at the close of trade.