Australian energy giant Woodside Energy has inked a significant long-term liquefied natural gas (LNG) supply agreement with Taiwan’s state-owned CPC Corporation, marking a milestone in the company’s expansion into Asian markets.
The sale and purchase agreement (SPA) outlines Woodside’s commitment to supply approximately six million tonnes of LNG to Taiwan over a 10-year period, commencing in July 2024.
This deal represents Woodside’s first long-term sales agreement with Taiwan, underscoring the growing demand for Australian LNG in the region.
The agreement also includes a potential extension, with Woodside possibly delivering an additional 8.4 million tonnes of LNG to CPC for another decade, from 2034 to 2043, subject to certain conditions and further negotiations.
Woodside CEO Meg O’Neill expressed enthusiasm about the deal, stating: “This agreement with CPC for long-term supply to Taiwan is a first for Woodside and another demonstration of the ongoing demand for Australian LNG in Asian markets.
“It also reinforces the value our customers place on Woodside’s ability to maintain [a] safe and reliable supply of energy into the 2030s.”
The LNG supplied under this agreement will be sourced from Woodside’s global portfolio, showcasing the company’s capacity to leverage its diverse assets to meet international demand.
CPC Corporation, as Taiwan’s sole importer and supplier of natural gas, plays a crucial role in ensuring energy security for the island nation.
The company’s diverse operations span oil and gas exploration and production, refining, petrochemicals, lubricants, solvents, and chemicals.
This deal comes at a time of increasing focus on energy security and diversification of supply sources in the Asia-Pacific region.
It not only strengthens Woodside’s position in the global LNG market but also contributes to Taiwan’s long-term energy strategy.
The news of this agreement has been well-received by investors, with Woodside shares gaining value following the announcement.
As the global energy landscape continues to evolve, this partnership between Woodside and CPC underscores the enduring importance of LNG in the Asia-Pacific energy mix and Australia’s role as a key supplier in the region.
