Woodside considers Texas LNG plant

Energy giant Woodside Petroleum has signed a project development agreement with US-based Sempra Energy for a potential liquefied natural gas plant in Texas.

Building on a memorandum of understanding between the two companies, Woodside and Sempra will continue discussions under the PDA for the assessment of a potential LNG facility at Port Arthur, east of Houston.

The project would potentially include two natural gas liquefaction trains with a total export capability of about 10 million metric tonnes per annum, along with LNG storage tanks and marine facilities for LNG ship berthing and loading.

Woodside chief executive Peter Coleman said progressing discussions with Sempra was a positive development for both parties to leverage their complementary capabilities.

“This opportunity fits well with our focus on building our business in core areas and offering our customers competitive and diverse supply options,” Mr Coleman said.

In a statement, Woodside said any decision to proceed with development, including the formation of a joint venture or partnership with Sempra, remained subject to completion of commercial agreements, acquisition of necessary approvals and permits, and securing financial commitments.

The Port Arthur project is one of several Woodside hopes to move forward with once oil prices improve.

Woodside shares were 2.3 per cent lower to $26.14 each at 10:30am.