Woodside to supply Asia’s ‘largest’ consumer with LNG for 15 years

Australia’s energy giant Woodside has signed a long-term sale and purchase agreement (SPA) with China Resources Gas International Limited, a gas distribution company owned by the state-controlled China Resources Holdings, to deliver liquefied natural gas (LNG) to China.

The deal entails the supply of around 0.6 million tonnes per annum (mtpa) of LNG over 15 years on a delivered basis, starting in 2027. The SPA is said to be the fourth agreement for long-term LNG sales into Asia signed by the Australian firm since the beginning of 2024. 

“We are very pleased to have launched our relationship with China Resources, the country’s leading gas utility,” noted Woodside Executive Vice President and Chief Commercial Officer, Mark Abbotsford. “This marks the first time Woodside on a standalone basis has signed a long-term sale agreement with a customer in China, Asia’s largest consuming market for LNG.”

According to Abbotsford, the agreement demonstrates the size of demand for LNG in Asian markets as regional players seek to guarantee energy supplies. Woodside CCO explained that this is also the first time China Resources has signed a 15-year LNG procurement agreement.

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. The signing of this SPA will also open up the potential for future cooperation between the two companies globally.” 

Last week, Woodside signed a technology development agreement (TDA) with Baker Hughes to jointly work on a lower-carbon power generation solution using Net Power, a platform designed for oil and gas, heavy industries, and other smaller-scale applications.

In February, the Australian major and its partners Esso Australia and Mitsui announced an investment of almost $200 million in the Kipper 1B project offshore Australia aiming to bring additional gas supply from the Gippsland Basin online.