The news: Oil and gas giant Woodside Energy has signed a long-term sale and purchase agreement with state-owned conglomerate China Resources for the supply of liquefied natural gas (LNG) to China.
The numbers: The agreement provides for the supply of around 600,000 tonnes of LNG per year over 15 years, commencing in 2027.
The deal marks Woodside’s fourth agreement for long-term LNG sales into Asia since the start of 2024.
Woodside shares were up 2.1% to $22.84 at 11:30am AEDT.
The context: The energy group said the agreement with China Resources is the first time it has signed a long-term sale agreement with a customer in China on a standalone basis. It is also the first time China Resources has signed an agreement to buy LNG over a period of 15 years.
What they said: “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,” said Woodside’s vice president and chief commercial officer Mark Abbotsford.
China Resources gas group chairman Yang Ping said: “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 [agreement] will also open up the potential for future cooperation between the two companies globally.”