Woodside said in a statement that the fully termed sale and purchase agreement (SPA)
is for the supply of 1 million tonnes per annum (mtpa) of LNG to Malaysia from 2028 for a
period of 15 years.
This SPA follows a heads of agreement that the two firms signed in June this year.
“Finalising 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,” Woodside executive VP and chief commercial officer Mark Abbotsford 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 centre growth, the wider adoption of artificial intelligence technologies and the transition away from coal-fired generation.
“We see natural gas as a long-term solution in this journey, and our collaboration with Woodside 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,” Petronas VP of LNG marketing and trading Shamsairi Ibrahim said.
Woodside and Petronas have a long-standing relationship, having previously collaborated on exploration studies, research, and development initiatives, and both spot and mid-term LNG transactions.
Louisiana LNG
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 sold 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.
