Woodside and Petronas formalize 15-year LNG supply deal

September 10, 2025, by Dragana Nikše

The Singaporean subsidiary of Australia’s energy giant Woodside and an affiliate of Malaysia’s Petroliam Nasional Berhad (PETRONAS) have finalized a sale and purchase agreement (SPA) for the supply of liquefied natural gas (LNG) from the former’s portfolio.

Woodside-Petronas document exchange; Source: Woodside via LinkedIn

Under the agreement between Woodside Energy Trading Singapore and PETRONAS LNG, 1 million tonnes per annum (mtpa) of LNG will be delivered to Malaysia from 2028 for a period of 15 years. As disclosed, the deal represents the conversion of the non-binding heads of agreement (HOA) signed in June 2025 into a binding contract.

At the time of the HOA announcement, Woodside’s CEO, Meg O’Neill, said this is the first long-term LNG sales opportunity between the two companies. As previously stated, LNG will be supplied from Woodside’s global portfolio, which may include volumes from the recently approved Louisiana LNG project in the U.S.

Mark Abbotsford, Woodside’s Executive Vice President & Chief Commercial Officer, noted: “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 SPA is said to be in line with PETRONAS’ efforts to boost energy security in Peninsular Malaysia by integrating upstream gas developments with LNG imports to meet the rising demand from the power and industrial sectors.

“As a responsible energy company, PETRONAS is committed to safeguarding Malaysia’s energy security while advancing the transition to a lower carbon future,” said Shamsairi Ibrahim, PETRONAS Vice President of LNG Marketing & Trading.

“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.”

In addition to LNG deals, Woodside has been busy with oil and gas-related developments. Last month, the energy giant was given the green light to connect, commission, and operate the floating production unit (FPU) at its Scarborough field as the Federal Court upheld the decision by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).