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South32 shakes hands with Woodside for Worsley gas supply

South32 has reached a long-term gas purchase agreement with Woodside Energy for the Worsley Alumina bauxite mine in Western Australia.

Woodside will supply South32 with around 40 Petajoules of pipeline gas from its portfolio of gas facilities in the state, including the North West Shelf, Pluto and Wheatstone.

Reinhardt Matisons, Woodside executive vice president, marketing trading and shipping, commented: “Over recent months, we’ve commissioned the Pluto pipeline gas and LNG truck loading facilities and started domestic gas production at Wheatstone, building on our foundation domestic gas business at the North West Shelf.

“Our agreement with Worsley Alumina, which makes a significant contribution to jobs and prosperity in its local community, is a further demonstration of Woodside’s commitment to supplying domestic gas to consumers in Western Australia from our diverse supply portfolio.”

The Worsley Alumina JV is owned by South32 (86 per cent), Japan Alumina Associates (10 per cent) and Sojitz (four per cent).

South32 plans to expand the existing Worsley Alumina mining area and incorporate new mining areas, subject to the approval of the Western Australian Environmental Protection Authority (EPA).

Worsley is one of South32’s larger global operations, accounting for $1.47 billion in revenue and $422 million in underlying earnings before interest and taxes in the 2018 financial year.

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