Woodside, China Resources Gas seal long-term LNG supply deal

Woodside said on Monday the SPA provides for the supply of about 0.6 million tonnes of LNG per year over 15 years on a delivered basis.

The deliveries to China will start in 2027.

Woodside executive VP & CCO Mark Abbotsford said this is Woodside’s fourth agreement for long-term LNG sales into Asia signed since the start of 2024.

Last year, Woodside signed LNG supply deals with Japan’s Jera, South Korea’s Kogas, and Taiwan’s CPC.

“We are very pleased to have launched our relationship with China Resources, the country’s leading gas utility,” Abbotsford said.

He 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.

In addition, 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,” Abbotsford said.

China Resources Gas chairman Yang Ping welcomed the signing of the company’s first-long term SPA with Woodside.

“The signing of this SPA will also open up the potential for future cooperation between the two companies globally,” Ping said.

China is the world’s largest importer of LNG.

The country received 76.65 million tonnes of LNG in 2024, a rise of 7.7 percent year-on-year.

This compares to 71.32 million tonnes in 2023, which marked a rise of 12.6 percent year-on-year.

LNG imports in 2024 were lower than 78.93 million tonnes in 2021, which marked a new record high due to rising demand from the power generation and industrial sectors.