Woodside Energy Group Ltd Pens an LNG Supply Deal With Pilgangoora Operations Pty Ltd

Woodside Energy Group Ltd signed its recent deal with Pilgangoora Operations Pty Ltd, a wholly-owned subsidiary of Pilbara Minerals. It was reported that an agreement had been forged, ensuring that Pluto LNG Facility, situated on the Burrup Peninsula, would commence supplying liquefied natural gas (LNG) to Pilgangoora Operations. This supply chain is set to begin in the latter part of 2024 and will stretch over five years, delivering an average of 3.4 terajoules per day directly from the Pluto Truck Loading Facility.

In a move that's expected to enhance environmental sustainability, Pilbara Minerals is looking to use the LNG within its Pilgangoora lithium operation, replacing diesel in power generation—a significant shift for one of the leading hard rock lithium deposits globally. The intricate financial aspects of the deal have been kept under wraps.

Furthering the discourse, Woodside's CEO, Meg O’Neill, touched on the broader implications of this partnership. It was mentioned that by transitioning to LNG, Pilbara Minerals aims to cut down on the emissions intensity of power in its operations. This change comes as the company continues to provide essential materials for lithium batteries, which find their utility in various domains, including consumer electronics, electric vehicles, and large-scale energy storage.

O'Neill expressed satisfaction in aligning with Pilbara Minerals, emphasizing mutual benefits such as job creation and local business opportunities in the northwest. This sentiment underscored Woodside's dedication to bolstering Western Australia's domestic gas supply, particularly through the Pluto project. The Pluto LNG project, operational since 2012, involves processing gas from the offshore Pluto and Xena fields, conveyed through a lengthy pipeline to the onshore LNG processing train, showcasing the group's intricate involvement in the region's energy landscape.

According to the article by Procurement Resource, Woodside Energy Group Ltd will supply LNG from its Pluto facility to Pilbara Minerals' subsidiary for power generation at Pilgangoora, aiding in reducing diesel use and emissions.