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Australia’s Woodside has signed a non-binding heads of agreement with Malaysia’s Petronas to supply the latter with liquefied natural gas (LNG) from its global portfolio. The deal may include supplies from Woodside’s Louisiana LNG project in the US.
Under the deal, Woodside will supply Petronas LNG, a unit of Petronas, with 1 million tonnes per annum of LNG to Malaysia from 2028.
According to Woodside, the deal is for 15 years.
Woodside said the agreement reflects the “shared ambition of both companies to formally commit to deepening cooperation across the LNG value chain.”
The two firms share a long-standing relationship, having previously cooperated on exploration studies and research and development initiatives along with both spot and mid-term LNG sales and purchases.
Woodside and Petronas are now working to convert the HOA into a sales and purchase agreement, the statement said.
Louisiana LNG
The agreement is expected to support Petronas’ efforts to ensure flexible LNG supply to
meet growing demand in Malaysia and the broader Asia-Pacific region.
Woodside executive VP and CCO Mark Abbotsford said this agreement marks the beginning of a new era of collaboration between the two companies and is an “important step towards what would be our first long-term LNG sales to Malaysia.”
Also, it reflects the “value global buyers see in Woodside’s Louisiana LNG project,” he added.
In April this year, the Australian LNG player made a final investment decision to develop the three-train, 16.5 mtpa Louisiana LNG project, which it acquired from Tellurian last year.
Woodside also agreed to sell 40 percent of its Louisiana LNG project to US private equity firm Stonepeak.
Stonepeak will provide $5.7 billion towards the expected capital expenditure for the LNG project on an accelerated basis, contributing 75 percent of capital expenditure in both 2025 and 2026.
In addition, Woodside signed a non-binding collaboration agreement with Saudi Arabia’s energy behemoth Aramco to explore global opportunities.
This includes Aramco’s potential acquisition of an equity interest in and LNG offtake from the Louisiana LNG project.
Woodside also signed LNG sale and purchase agreements with Germany’s Uniper to supply the latter from its Louisiana LNG project and its global portfolio.