Woodside to buy US LNG.
Woodside to buy US LNG.

UPDATE 2.20pm: Woodside has signed an agreement with Cheniere Energy in the US to buy 850,000 tonnes of LNG a year from the Corpus Christi liquefaction project in Texas.

The company said it would pay 115 per cent of the monthly Henry Hub price plus $US3.50 per million British thermal unit (MMBtu), in line with contracts signed with other buyers from the project.

The twenty-year agreement includes an extension option of up to an additional ten years and a mechanism that gives Woodside the option to forgo deliveries with sufficient notice through the payment of $US3.50 per MMBtu for cancelled quantities.

Cargoes to Woodside from Train 2 of the project are expected to start in 2019.

Woodside chief executive Peter Coleman said the agreement with Corpus Christi Liquefaction complemented Woodside's existing portfolio by providing a new product source that diversified the company's LNG product offering.

"This agreement is a demonstration of how we are extending and enhancing our marketing and trading capabilities and adding value to the portfolio," he said.

"From a geographic, pricing and specification perspective we expect this US LNG to be attractive to LNG purchasers, complement our existing LNG portfolio and allow us to exploit new opportunities."

Woodside shares closed up 21 cents at $41.28.

The West Australian

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