By David Winning

SYDNEY--Woodside Petroleum Ltd. said it had agreed to expand a liquefied natural gas supply deal with Uniper Global Commodities SE, injecting momentum to a possible development of its Scarborough project offshore Australia.

Woodside said a revised sale-and-purchase agreement would double volumes supplied to Uniper. Terms involve the initial supply of up to 1 million metric tons of LNG annually from this year, increasing to around 2 million tons annually from 2026.

Most of the LNG supply from 2025 hinges on Woodside proceeding with the development of the Scarborough project.

"Scarborough is a globally competitive, capital-efficient LNG development which supports the decarbonization ambitions of our customers," said Chief Executive Peter Coleman. "We expect the timing to be right for final investment decisions on Scarborough and Pluto Train 2 in the second half of this year."

Mr. Coleman said Woodside has now secured long-term customers for more than 40% of the company's share of Scarborough's LNG production.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

01-17-21 1819ET