Woodside Bags 15-Year Contract to Supply LNG to China

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Woodside Bags 15-Year Contract to Supply LNG to China

State-owned China Resources Gas International Ltd. has contracted Woodside Energy Group Ltd. for the supply of 600,000 metric tons per annum of liquefied natural gas (LNG) to China over 15 years. Since last year the Australian oil and gas exploration and production company has roped in major customers in the key LNG importing region of […]

State-owned China Resources Gas International Ltd. has contracted Woodside Energy Group Ltd. for the supply of 600,000 metric tons per annum of liquefied natural gas (LNG) to China over 15 years.

Since last year the Australian oil and gas exploration and production company has roped in major customers in the key LNG importing region of East Asia.

The LNG for China Resources Gas will be supplied from 2027 on a delivered basis, Woodside said in a press release.

“We are very pleased to have launched our relationship with China Resources, the country’s leading gas utility”, commented 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. And it is the first time China Resources has signed an agreement to procure LNG over a period of 15 years.

“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”.

China Resources Gas Group chair Yang Ping said, “The signing of this SPA [sale and purchase agreement] will also open up the potential for future cooperation between the two companies globally”.

Woodside said the deal is the fourth long-term contract it has signed since 2024 to sell LNG to Asia.

On September 18, 2024, Woodside said it had signed an agreement to deliver 400,000 metric tons a year of LNG to Japan. The 10-year agreement with power producer JERA Co. Inc. will fulfill its first cargo 2026 on a delivered basis.

“This LNG offtake agreement is Woodside’s first long-term sale to JERA from our global portfolio”, Abbotsford said then.

On July 11, 2024, Woodside announced a deal to supply 6 million metric tons to Taiwan’s national oil and gas company CPC Corp. The 10-year supply was to start last year on a delivered basis.

“Woodside may also deliver approximately 8.4 million tonnes of LNG to CPC for a further 10 years, from 2034 to 2043, subject to conditions and agreement on terms for this period”, Woodside said.

Woodside said the contract with CPC is its first long-term LNG sale to Taiwan. The supply is to be sourced from Woodside’s global portfolio.

On February 28, 2024, Woodside said it had inked an agreement with Korea Gas Corp. (KOGAS) for the supply of 500,000 metric tons a year of LNG to South Korea. The contract lasts 10.5 years on a delivered basis, starting 2026.

This is Woodside’s first long-term agreement to supply LNG to South Korea, it said.

“By leveraging this SPA, we look forward to further expanding our business opportunities with Woodside in the LNG industry”, KOGAS president and chief executive Choi Yeon-hye said.

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