Woodside, Pilgangoora Operations sign LNG supply agreement for Pilbara Minerals

In a significant development for the energy sector, Woodside has finalized a Sales and Purchase Agreement (SPA) with Pilgangoora Operations Pty Ltd, a wholly-owned subsidiary of Pilbara Minerals. The deal, set to commence in Q4 of 2024, spans five years and entails the supply of an average volume of 3.4 terajoules/day of Domestic LNG from the Pluto Truck Loading Facility.

This groundbreaking agreement is a testament to Woodside’s commitment to the Western Australian domestic gas supply and marks a pivotal step in the energy transition landscape. The supplied LNG will be a game-changer for Pilbara Minerals’ Pilgangoora lithium operation, strategically located 300 kilometers east of Karratha, which ranks among the world’s largest hard rock lithium deposits.

Woodside’s LNG to Replace Diesel in Pilbara Minerals’ Pilgangoora Lithium Project

Transforming Energy Use at Pilgangoora

The primary application of the LNG from this agreement is to replace diesel in power generation at the Pilgangoora operation. This shift not only signifies a move towards cleaner energy but also aligns with the growing demand for lithium, a crucial component in the production of batteries for consumer electronics, electric vehicles, and large-scale energy storage.

Meg O’Neill, the CEO of Woodside, highlighted the significance of the SPA, stating, “The supply of LNG to the Pilgangoora operation assists Pilbara Minerals to reduce power emissions intensity from its operations by reducing diesel use as it continues to supply the raw materials that are vital in the production of lithium batteries.”

A Partnership Benefiting Local Communities

The collaboration between Woodside and Pilbara Minerals extends beyond mere business transactions. It represents a joint effort in supporting local businesses and providing direct employment opportunities in the northwest region of Western Australia. The LNG will be supplied on an ex-works basis from Woodside’s Pluto LNG Facility on the Burrup Peninsula, further cementing Woodside’s role as a key player in the region’s resource sector.

This deal not only showcases Woodside’s proactive approach in the energy transition but also reinforces its role as a leader in supporting local industries and contributing to a cleaner energy future.