Wedoany.com Report-Mar 17, Woodside Energy has made is first solo venture into China’s massive energy market.
It is the company’s fourth agreement for long-term LNG sales into Asia signed since the start of 2024.
The Perth-headquartered oil and gas major said on Monday it had signed a 15-year sale and purchase agreement with China Resources Gas International to supply 600,000 tonnes of LNG, starting from 2027.
Woodside chief commercial officer Mark Abbotsford said it 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 chair Yang Ping said Woodside’s growing global LNG portfolio had created a solid foundation for the agreement.
“The signing of this SPA will also open up the potential for future co-operation between the two companies globally,” Mr Yang said.
Last July, Woodside signed a deal to ship as much as 14 million tonnes of LNG to Taiwan’s state-owned CPC Corporation. About 6mt of the super-chilled fuel will be supplied over 10 years with the option for another 8.4mt to 2043.
Woodside boss Meg O’Neill has repeatedly told investors that Asia will be crucial customer as it transitions from coal-powered energy generation to gas, which would cut carbon emissions by 680 million tonnes a year.
But further production from Woodside’s North West Shelf joint venture rests on a Federal Government decision on approvals to extend the life of the project by another 50 years.
The Government is facing a growing chorus of voices pushing for a tick by the end of the month — before a Federal election is called.
Those voice grew louder last week when Japanese energy giant JERA warned it was looking to the US and Middle East as more reliable sources of LNG as Australia grappled with lengthy approvals processes to bring new projects online.
Such a dramatic shift could cost thousands of local jobs.
