The Australian oil and gas company Beach Energy has confirmed the finalisation and signing of an LNG sale and purchase agreement (SPA) with BP Singapore, a subsidiary of BP, under which the latter will buy 3.75 Mt/year of Beach Energy’s expected LNG volumes from the Waitsia Stage 2 LNG project. Supply is expected to begin in the second half of 2023 and will continue for about five years.
Supply will be delivered on a free on-board basis from the North-West Shelf (NWS) facilities in Karratha, Western Australia, a venture in which BP is already an existing participant. This deal has a hybrid pricing structure, meaning that payment will be linked to the Brent crude and Japan Korea Marker (JKM) benchmarks.
The Waitsia Stage 2 project, whose construction began in October 2021, includes a gas processing plant with a 20-year life cycle that is expected to be commissioned in 2023. The project is located in the northern Perth Basin near the town of Dongara, about 350 kilometres north of Perth. The Waitsia Joint Venture partners include Beach Energy and Japan’s Mitsui E&P. Mitsui and Beach Energy has signed a final investment decision (FID) on the project in January 2021.
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