Woodside has entered into a long-term sale and purchase agreement (SPA) with China Resources Gas International Limited (China Resources) to supply liquefied natural gas (LNG) to China, according to the company's release.
The SPA stipulates the delivery of approximately 0.6 million tonnes of LNG per year over 15 years, beginning in 2027. This marks Woodside’s fourth long-term LNG sales agreement in Asia since the start of 2024, as noted by Woodside Executive Vice President & Chief Commercial Officer Mark Abbotsford.
Abbotsford stated, “We are very pleased to have launched our relationship with China Resources, the country’s leading gas utility,” adding, “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 commented, “We are delighted to sign our first-long term SPA with Woodside Energy, a leading supplier of LNG globally,” noting, “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.”
Woodside is an Australian energy company, headquartered in Perth, primarily focused on oil and gas exploration and production.
China Resources Gas International Limited (China Resources) is a subsidiary of China Resources Group, based in Hong Kong, it operates as a major gas utility distributing natural gas across China.