REG - Woodside Energy Grp. - WDS and Mexico Pacific sign LNG supply agreement

Woodside EnergyAnnouncement

06/12/2023 07:00

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RNS Number : 8005V  Woodside Energy Group Ltd  06 December 2023

Woodside Energy Group Ltd

ACN 004 898 962

Mia Yellagonga

11 Mount Street

Perth WA 6000

Australia

T +61 8 9348 4000

www.woodside.com

 

ASX: WDS

NYSE: WDS

LSE: WDS

 

Announcement

 

Wednesday, 6 December 2023

 

 

WOODSIDE AND MEXICO PACIFIC SIGN LNG SUPPLY AGREEMENT

 

Woodside has signed a sales and purchase agreement (SPA) with Mexico Pacific
Limited (Mexico Pacific) to purchase 1.3 million tonnes per annum (Mtpa),
equivalent to approximately 18 cargoes per year, of liquefied natural gas
(LNG) for 20 years.

 

LNG is expected to play a critical role in the energy transition and long-term
demand is anticipated to remain strong. This agreement is consistent with
Woodside's strategic objective of building global scale and flexibility in its
LNG portfolio.

 

Woodside CEO Meg O'Neill said, "As we deliver on our strategy, we aim to
complement Woodside's produced LNG supply with third parties' volumes, giving
us greater scale and portfolio flexibility to serve our customers, while
optimising our LNG trading activities.

 

"This agreement with Mexico Pacific delivers a new source of LNG into our
trading portfolio, expands our geographic diversification in the Pacific Basin
and builds on our presence in Mexico.

 

"Mexico Pacific's Saguaro Energia LNG Project is located on the Pacific coast
of Mexico, providing proximity to key markets in Asia."

 

Under the SPA, Woodside will purchase the LNG from the Saguaro Energia LNG
Project, located in Puerto Libertad, Sonora, Mexico on a free-on-board basis
with pricing linked to US gas indices.

 

The SPA is subject to Mexico Pacific taking a final investment decision (FID)
on the proposed third train at the Saguaro Energia LNG Project. The FID is
expected in the first half of 2024 and commercial operations are targeted to
commence in 2029.

 

"We are delighted to welcome Woodside, one of the most established global LNG
market participants, as a foundation customer of Train 3, further validating
the value of west coast Mexican LNG," said Sarah Bairstow, President of Mexico
Pacific. "We look forward to continuing our collaborative relationship with
Woodside to bring additional supply online to address critical energy security
and energy transition needs."

 

 

 

 Contacts:

 INVESTORS                                             MEDIA

 Marcela Louzada (Group)    Rohan Goudge (US)          Christine Forster

 M: +61 456 994 243         M: +1 (713) 679-1550       M: +61 484 112 469

                                                       E: christine.forster@woodside.com

 Sarah Peyman (Australia)   E: investor@woodside.com

 M: +61 457 513 249

 

This announcement was approved and authorised for release by Woodside's
Disclosure Committee

 

 

Forward-looking statements

 

This announcement contains forward-looking statements with respect to
Woodside's business and operations, market conditions, results of operations
and financial condition, including, for example, but not limited to,
statements regarding long-term demand for Woodside's products and the
development, completion and execution of third-party projects. All statements,
other than statements of historical or present facts, are forward-looking
statements and generally may be identified by the use of forward-looking words
such as 'guidance', 'foresee', 'likely', 'potential', 'anticipate', 'believe',
'aim', 'estimate', 'expect', 'intend', 'may', 'target', 'plan', 'strategy',
'forecast', 'outlook', 'project', 'schedule', 'will', 'should', 'seek' and
other similar words or expressions. Similarly, statements that describe the
objectives, plans, goals or expectations of Woodside are forward-looking
statements.

Forward-looking statements in this announcement are not guidance, forecasts,
guarantees or predictions of future events or performance, but are in the
nature of future expectations that are based on management's current
expectations and assumptions. Those statements and any assumptions on which
they are based are subject to change without notice and are subject to
inherent known and unknown risks, uncertainties, assumptions and other
factors, many of which are beyond the control of Woodside, its related bodies
corporate and their respective officers, directors, employees, advisers or
representatives.

A more detailed summary of the key risks relating to Woodside and its business
can be found in the "Risk" section of Woodside's most recent Annual Report
released to the Australian Securities Exchange and the London Stock Exchange
and in Woodside's most recent Annual Report on Form 20-F filed with the United
States Securities and Exchange Commission and available on the Woodside
website at https://www.woodside.com/investors/reports-investor-briefings. You
should review and have regard to these risks when considering the information
contained in this announcement.

All forward-looking statements contained in this announcement reflect
Woodside's views held as at the date of this announcement and, except as
required by applicable law, Woodside does not intend to, undertake to, or
assume any obligation to, provide any additional information or update or
revise any of these statements after the date of this announcement, either to
make them conform to actual results or as a result of new information, future
events, changes in Woodside's expectations or otherwise.

Investors are strongly cautioned not to place undue reliance on any
forward-looking statements. Actual results or performance may vary materially
from those expressed in, or implied by, any forward-looking statements.

 

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