Australia’s leading independent oil and gas producer, Woodside Energy, has entered into a preliminary long-term agreement to supply Malaysia’s state-owned energy giant Petronas with liquefied natural gas (LNG) sourced from its international portfolio, including the upcoming Louisiana LNG facility in the United States.
On Wednesday, Woodside announced it has signed a non-binding Heads of Agreement (HOA) with Petronas to deliver 1 million tons per annum of LNG starting in 2028, with the contract set to run for 15 years. The LNG supply will primarily come from Woodside’s global assets, potentially incorporating volumes from the recently approved Louisiana LNG project.
Mark Abbotsford, Woodside’s Executive Vice President and Chief Commercial Officer, emphasized that the deal underscores the confidence global buyers place in Woodside’s Louisiana project and its reputation as a dependable energy supplier to Asian markets.
The two companies are currently working to formalize the HOA into a binding sales and purchase agreement.
Earlier in April, Woodside made the final investment decision (FID) on the Louisiana LNG project, targeting production commencement in 2029. The facility is planned to feature three liquefaction trains with a combined annual capacity of 16.5 million tons, elevating Woodside’s total LNG capacity to 24 million tons per year by the 2030s.
Additionally, Woodside holds permits to expand the Louisiana site with two more trains, which would increase total capacity to 27.6 million tons annually.
In discussing the project’s financing and partnerships, Woodside’s leadership highlighted ongoing talks with potential additional collaborators to further reduce capital costs and accelerate project value.
Notably, Woodside has sold a 40% stake in Louisiana LNG to infrastructure investment firm Stonepeak. Stonepeak is set to contribute $5.7 billion towards the project’s capital expenditure, covering approximately 75% of the planned capex over this year and the next.
This strategic partnership reinforces Woodside’s commitment to expanding its LNG footprint globally while meeting Asia’s growing energy demand.
