Germany – Woodside has entered into a flexible long-term sale and purchase agreement (SPA) with Uniper to supply LNG to Europe for a term up to 2039, commencing in January 2023. For the duration of the contract, the company has agreed to ship a maximum of twelve LNG cargoes annually.
Uniper is projected to finalize its long-term strategic capacity bookings in Northwest Europe by March 2023, which will make supply available there beginning in September 2031.
Nord Stream 1 halt
This deal helps to cut the reliance on Russian supplies, as it comes just days after Gazprom, a Russian state-owned international energy business, announced an indefinite halt to gas supplies via the Nord Stream 1 pipeline.
The Kremlin stated that unless the West fully relaxes sanctions against Moscow, the deliveries to Europe via the Nord Stream 1 pipeline will not resume. The Kremlin’s comments are the most direct evidence yet that Russia is trying to convince Europe to reverse the economic sanctions imposed as a result of its invasion of Ukraine. Natural gas prices in Europe spiked on Monday after supplies were cut off from the Nord Stream 1 pipeline that runs from Russia to Germany under the Baltic Sea.
The annual delivery capacity of 55 billion cubic meters (bcm) of gas through the Nord Stream 1 pipeline makes it the largest gas pipeline between Russia and Europe. Pipeline supplies must be maintained if the energy situation is not to worsen.