Woodside has signed a sales and purchase agreement (SPA) with Pilgangoora Operations Pty Ltd, a 100%-owned subsidiary of Pilbara Minerals, for the supply of domestic LNG from the Pluto Truck Loading Facility.
Supply under the SPA will commence in 4Q24 for a period of five years. The average volume to be supplied is 3.4 TJ/d.
The LNG is to be used at Pilbara Minerals’ Pilgangoora lithium operation, located 300 km east of Karratha, where it will replace diesel for power generation.
The Pilgangoora operation is one of the world’s largest hard rock lithium deposits.
Woodside CEO Meg O’Neill said the SPA was 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.
“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,” she said.
The LNG will be supplied on an ex-works basis from the Pluto Truck Loading Facility at Woodside’s Pluto LNG Facility on the Burrup Peninsula in Western Australia.