Australia's Woodside Pockets 5-Year LNG Supply Deal With Pilbara Minerals

Woodside Energy Group Ltd WDS penned a Sales and Purchase Agreement (SPA) with Pilgangoora Operations Pty Ltd, for supplying Domestic LNG from the Pluto Truck Loading Facility.

Pilgangoora Operations is a fully owned subsidiary of Pilbara Minerals PILBF.

The company will start the supply in Q4 2024 for five years, and the average supply volume will be 3.4 terajoules/day.

This agreement is at par with the company's commitment to domestic gas supply from the Pluto project in Western Australia.

"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," Meg O'Neill, CEO said.

Earlier this month, Woodside confirmed that it is in discussions with Santos Ltd. SSLZY for a potential merger.

Related: Australian Energy Titans Woodside And Santos In Talks For Merger: Details

Price Action: WDS shares closed lower by 1.10% at $20.72 on Wednesday.

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