Woodside Energy Group Ltd secured an agreement to supply Petroliam Nasional Bhd (Petronas) one million metric tons per annum (MMtpa) of liquefied natural gas (LNG) over 15 years starting 2028, the companies said Wednesday.
The sale and purchase agreement (SPA) finalizes a preliminary deal signed between Malaysia’s state-owned Petronas and Australia’s Woodside in June, a joint statement said.
“Finalizing this long-term LNG supply agreement with Petronas represents a strategic milestone for Woodside as it is our first long-term LNG supply arrangement with Malaysia”, commented Woodside executive vice president and chief commercial officer Mark Abbotsford.
“The agreement is another demonstration of the strength and flexibility of Woodside’s diversified global portfolio and reinforces our position as a trusted energy supplier in Asia, supporting long-term value creation and regional prosperity”.
The companies said, “The SPA also supports Petronas’ efforts to enhance energy security in Peninsular Malaysia by integrating upstream gas developments with LNG imports to meet rising demand from the power and industrial sectors, driven by data center growth, the wider adoption of artificial intelligence technologies and the transition away from coal-fired generation”.
Petronas vice president for LNG marketing and trading Shamsairi Ibrahim commented, “Petronas is committed to safeguarding Malaysia’s energy security while advancing the transition to a lower carbon future. We see natural gas as a long-term solution in this journey, and our collaboration with Woodside Energy represents an important step towards ensuring reliable and flexible supply for Malaysia’s growing economy, while enhancing Petronas’ global portfolio to deliver energy responsibly and sustainably”.
The LNG for Petronas is to come from Woodside’s global portfolio including the under-construction Louisiana LNG, formerly Driftwood LNG, in the United States.
Woodside announced a positive FID (final investment decision) on Louisiana LNG in April, with a projected gross capital spend of $17.5 billion. In June it completed a farm-down of 40 percent to Stonepeak Partners LP.
The Gulf Coast project holds a permit from the U.S. Department of Energy (DOE) to export a cumulative 1.42 trillion cubic feet a year of natural gas equivalent, or 27.6 MMtpa of LNG according to Woodside, to both FTA and non-FTA countries. The DOE authorization was first granted – later amended – February 2017 for the portion for countries with a free trade agreement (FTA) with the U.S. and May 2019 for the non-FTA portion.
The FID is for phase I, which involves three liquefaction trains with a combined capacity of 16.5 MMtpa.
Before the Petronas deal, Woodside secured a contract to supply German power and gas utility Uniper SE one MMtpa from Louisiana LNG for up to 13 years from the facility’s commercial operations date (COD) plus up to one MMtpa from Woodside’s global portfolio, starting with Louisiana LNG’s COD and lasting until 2039.
Also this year Woodside inked an agreement to supply China Resources Gas International Ltd about 0.6 MMtpa over 15 years from 2027.
Woodside in 2025 also penned a heads-of-agreement document with JERA Co Inc for approximately 0.2 MMtpa for five years from 2027.
To contact the author, email jov.onsat@rigzone.com
What do you think? We’d love to hear from you, join the conversation on the
Rigzone Energy Network.
The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.
element
var scriptTag = document.createElement(‘script’);
scriptTag.src = url;
scriptTag.async = true;
scriptTag.onload = implementationCode;
scriptTag.onreadystatechange = implementationCode;
location.appendChild(scriptTag);
};
var div = document.getElementById(‘rigzonelogo’);
div.innerHTML += ” +
‘
‘ +
”;
var initJobSearch = function () {
//console.log(“call back”);
}
var addMetaPixel = function () {
if (-1 > -1 || -1 > -1) {
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
} else if (0 > -1 && 91 > -1)
{
/*Meta Pixel Code*/
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1517407191885185’);
fbq(‘track’, ‘PageView’);
/*End Meta Pixel Code*/
}
}
// function gtmFunctionForLayout()
// {
//loadJS(“https://www.googletagmanager.com/gtag/js?id=G-K6ZDLWV6VX”, initJobSearch, document.body);
//}
// window.onload = (e => {
// setTimeout(
// function () {
// document.addEventListener(“DOMContentLoaded”, function () {
// // Select all anchor elements with class ‘ui-tabs-anchor’
// const anchors = document.querySelectorAll(‘a .ui-tabs-anchor’);
// // Loop through each anchor and remove the role attribute if it is set to “presentation”
// anchors.forEach(anchor => {
// if (anchor.getAttribute(‘role’) === ‘presentation’) {
// anchor.removeAttribute(‘role’);
// }
// });
// });
// }
// , 200);
//});
