Woodside has signed a long-term agreement to supply liquefied natural gas (LNG) to China Resources Gas International, a milestone in the company’s expansion into the Chinese market.
Under the sale and purchase agreement (SPA), Woodside will deliver approximately 0.6 million tonnes of LNG annually to China over 15 years, starting in 2027.
Woodside Executive Vice President and Chief Commercial Officer Mark Abbotsford highlighted the significance of the deal.
“We are very pleased to have launched our relationship with China Resources, the country’s leading gas utility,” 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 Chairman Yang Ping welcomed the deal.
“We are delighted to sign our first long-term SPA with Woodside Energy, a leading supplier of LNG globally,” Yang said.
“Woodside’s growing global LNG portfolio and its proven track record as an operator have created a solid foundation for the agreement. The signing of this SPA will also open up the potential for future cooperation between the two companies globally.”