Ten-year deal with Woodside helping Japan up its decarbonization ante by adding Australian LNG to its energy mix

Australian energy player Woodside has signed a long-term sale and purchase agreement (SPA) with Japan’s power generation company JERA, a joint venture of TEPCO Fuel & Power Incorporated and Chubu Electric Power Company, to deliver liquefied natural gas (LNG) to Japan.

Woodside is set to supply approximately 0.4 million tonnes, or six LNG cargoes per year over ten years on a delivered basis, starting in April 2026. The natural gas will be sourced from volumes across Woodside’s global portfolio.

“This LNG offtake agreement is Woodside’s first long-term sale to JERA from our global portfolio and delivers on one of the core elements of our strategic relationship outlined earlier this year. We understand the demand from our customers in the Asian region for reliable energy. LNG continues to be an important energy source for Japan, one which can support the country’s efforts to decarbonise,” noted Mark Abbotsford, Woodside’s Executive Vice President and Chief Commercial Officer.

This comes on the heels of Woodside agreeing to sell a 15.1% non-operating participating interest in the Scarborough joint venture, covering Australia’s Scarborough gas field and associated offshore and subsea infrastructure, to JERA in February. The equity sale is expected to be completed before the year’s end.

Earlier this month, the Australian firm submitted an environment plan (EP) to the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) for a floating production unit (FPU) work associated with subsea infrastructure activities at the Scarborough field.

One of the locations where Woodside is developing a gas project, Browse Basin, is faced with a potential problem as it has been identified as a habitat of the dusky sea snake, which was recently declared endemic by Australia’s Department of Climate Change, Energy, the Environment and Water (DCCEEW).