Woodside signs 15-year LNG supply agreement with China Resources

Australian petroleum exploration and production company Woodside Energy has signed a fourth agreement for long-term liquefied natural gas (LNG) sales into Asia.

The sale and purchase agreement (SPA) with China Resources Gas International is Woodside's first stand-alone long-term sale deal with a Chinese customer.

Under the terms of the agreement, Woodside will supply approximately 600,000 tonnes per annum (tpa) of LNG to China Resources over a 15-year period.

Woodside has signed three LNG sale deals to date since the start of 2024.

Woodside executive vice-president and chief commercial officer Mark Abbotsford said: “We are very pleased to have launched our relationship with China Resources, the country’s leading gas utility.

“The agreement again demonstrates the depth and length of demand for LNG in Asian markets as nations in the region seek to guarantee energy supplies.”

This SPA signing also creates opportunities for future global collaboration between the two companies.

China Resources Gas group chairman Yang Ping said: “We are delighted to sign our first-long term SPA with Woodside Energy, a leading supplier of LNG globally. Woodside's growing global LNG portfolio and its proven track record as an operator have created a solid foundation for the agreement.”

China Resources Gas is principally engaged in downstream city gas distribution business including piped natural gas distribution and natural gas filling stations operation.

Woodside’s Australian portfolio features operated and non-operated oil and gas projects throughout Australia.

The company’s international portfolio includes assets in the US, Mexico, Africa and the Caribbean, with growth options.

In February, Woodside Energy CEO Meg O’Neill emphasised how trade policies and a pro-fossil fuel agenda are driving the company’s $1.2bn (A$1.9bn) investment in the Louisiana LNG project.

Also, Woodside Energy is in talks with multiple potential partners to sell stakes in its Louisiana LNG project.

Sources indicate that potential buyers include Tokyo Gas, JERA and MidOcean Energy, backed by Saudi Aramco.

"Woodside signs 15-year LNG supply agreement with China Resources" was originally created and published by Offshore Technology, a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.