Woodside Energy Ltd (‘Woodside’) has entered into a non-binding memorandum of understanding (MOU) with Perdaman Chemicals and Fertilisers Pty Ltd (‘Perdaman’) for the supply of natural gas.

Under the terms of the MOU, Woodside will supply approximately 125 terajoules per day of domestic gas for use in Perdaman’s proposed 2 million tonne per annum urea plant on the Burrup Peninsula.

Natural gas will be supplied from Woodside’s portfolio of domestic gas underpinned by the proposed Scarborough development. Supply will commence from the early 2020s for a period of between 20 and 25 years.

Woodside and Perdaman have committed to negotiate in good faith a gas sale and purchase agreement consistent with the terms of the MOU this year.

Woodside CEO Peter Coleman said the MOU is a further demonstration of Woodside’s commitment to finding innovative ways to power the Pilbara and support local manufacturing and exports for WA.

“Supplying domestic gas from our portfolio will underpin a fresh wave of investment in the Pilbara region.

“Our Burrup Hub projects can support the economic diversification of the region in the years ahead and ensure we are positioned to meet long-term global LNG demand,” he said.

Woodside is also committed to working with the State Government to deliver local jobs.

Based in Western Australia, Perdaman specialises in the production of urea, a commonly traded nitrogenous fertiliser. Perdaman is part of the multi-national Perdaman Group.