Woodside Energy has inked a significant long-term liquefied natural gas (LNG) supply agreement with China Resources Gas, marking a major milestone in the company’s expansion into the Asian market.
The sale and purchase agreement (SPA) will see Woodside deliver approximately 0.6 million tonnes of LNG annually to China over a 15-year period, commencing in 2027.
This deal represents Woodside’s first standalone long-term sale agreement with a Chinese customer and China Resources‘ inaugural 15-year LNG procurement commitment.
Mark Abbotsford, Woodside‘s Executive Vice President and Chief Commercial Officer, highlighted the strategic importance of the agreement, stating: “We are very pleased to have launched our relationship with China Resources, the country’s leading gas utility.”
He emphasised that this marks Woodside’s fourth long-term LNG sales agreement in Asia since the beginning of 2024, underscoring the growing demand for LNG in the region.
The agreement not only solidifies Woodside’s position in China, the world’s largest LNG importing market but also demonstrates the increasing appetite for long-term energy security in Asian nations.
Abbotsford noted: “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 Chairman Yang Ping expressed enthusiasm about the partnership, stating: “We are delighted to sign our first long-term SPA with Woodside Energy, a leading supplier of LNG globally.”
Ping also highlighted the potential for future collaboration between the two companies on a global scale.
This landmark deal comes as part of a broader trend in the energy sector, with LNG playing an increasingly crucial role in the transition towards cleaner energy solutions.
As countries in Asia continue to seek alternatives to reduce their carbon footprint, long-term LNG supply agreements like this one are expected to become more prevalent in the coming years.
