The agreement would also enable pipeline operator Western Gas to backfill existing liquefied natural gas (LNG) plants in the region and strengthen domestic energy security amid global energy market disruption and increasing LNG demand.
Privately-owned Western Gas has waited for more than three years to find a partner for the $3.5 billion project, the final investment decision of which is planned for 2024.
"This supports WA's long-term energy needs, increases energy security, and supports ongoing economic development," said Western Gas Executive Director Andrew Leibovitch.
Operator Woodside Energy Chief Executive Officer Meg O'Neill said that by leveraging existing infrastructure, Woodside would enable Western Gas to access a competitive option to supply Asian LNG markets while providing additional domestic gas security for Western Australia.
North West Shelf LNG plant, Australia's oldest and largest LNG plant, is set to close one of five processing units in 2024 as its foundation fields are drying up.
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