Woodside has signed a contract with Indonesia’s Pertamina to supply between 500,000 to one million tonnes of LNG each year for 15 to 20 years.
The heads of agreement (HoA) will follow after board approvals.
According to the US Energy Information Administration, Indonesia’s domestic energy consumption increased by 43 per cent between 2003 and 2013, with the government hoping to raise the shares of natural gas to approximately 22 per cent by 2025.
The agreement was signed at an undisclosed sum with the supply expected to begin in 2019.
This comes after Woodside halted the $40 billion Browse Basin floating liquefied natural gas (FLNG) project, which planned to create a massive offshore LNG hub.
The project was mothballed due to uncertainty in the market and decreasing energy prices. At the time, Woodside CEO Peter Coleman said they would continue developing the basin at the earliest opportunity, preferring the FLNG system, but not within the current economy.
Earlier this year, Woodside reported a 99 per cent fall in full year profit. Coleman highlighted his reservations about conducting ‘mega projects’ due to their complex nature and the difficulty in efficient management for both owners and contractors.