DESPITE Woodside CEO Liz Westcott expressing concerns about the future of LNG at last week’s Energy Exchange Australia conference the oil and gas producer has signed a major long-term deal with China Resources.
The 15-year sale and purchase agreement (SPA) with China Resources Gas International Limited (China Resources) is for the supply of liquefied natural gas (LNG) to China.
A Woodside media release issued on 17 March said the SPA provides for the supply of approximately 0.6 million tonnes of LNG per year over 15 years on a delivered basis, starting in 2027.
Woodside Executive Vice President & Chief Commercial Officer Mark Abbotsford said the SPA was the company’s fourth agreement for long-term LNG sales into Asia signed since the start of 2024.
“We are very pleased to have launched our relationship with China Resources, the country’s leading gas utility,” Mr Abbotsford said.
“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 Chairman Yang Ping said Woodside’s growing global LNG portfolio and its proven track record as an operator had 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,” he said.
