Multi-year LNG offtake with Japanese player in Woodside’s bag

January 15, 2026, by Melisa Cavcic

Woodside Energy Trading Singapore, a subsidiary of Australia’s energy giant Woodside, has sealed a sale and purchase agreement (SPA) with Japan’s JERA for a long-term supply of liquefied natural gas (LNG) during Japan’s peak winter period.

With the SPA execution, Woodside will provide JERA with three LNG cargoes of approximately 0.2 million tonnes per year for five years, beginning in 2027. This LNG will be supplied to Japan on a delivered ex-ship (DES) basis during the northern hemisphere winter months, encompassing December to February.

The deal is designed to support reliable access to LNG during the critical winter months, when energy consumption in Japan peaks. The volumes supplied to the Japanese firm will be sourced from Woodside’s global LNG portfolio, leveraging assets such as Scarborough, North West Shelf, Pluto LNG, and LALNG, once it is operational.

Kosuke Tanaka, Executive Officer, Head of the LNG Division at JERA, outlined: “Building on our partnership with Woodside, this agreement enhances our supply resilience and flexibility to respond more effectively to seasonal demand fluctuations, particularly the winter season, supporting Japan with a stable and reliable energy supply.”

The Australian giant claims that the agreement, which builds on a heads of agreement (HOA) signed in June 2025, reflects the duo’s shared commitment to market-based arrangements that strengthen resilience and strategic preparedness, under a company-to-company discussion framework for enhanced cooperation on energy security established by the government of Japan and the Japan Bank of International Cooperation (JBIC).

Manabu Kato, Director General of the Energy Solutions Finance Department at JBIC, stated: “We are pleased to acknowledge the execution of the SPA, which is intended to help ensure stable LNG supply during Japan’s peak winter demand period.

“This significant initiative builds upon the framework established between JBIC and Woodside and further strengthens our longstanding cooperation. JBIC remains fully committed to contributing to Japan’s energy security through sustained, multifaceted engagement with all relevant stakeholders.”

The SPA also follows Woodside’s sale in 2024 of a 15.1% non-operating participating interest in the Scarborough joint venture to JERA and a loan agreement with JBIC to support the Scarborough energy project.

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This latest deal with JERA is perceived to spotlight the strong momentum the Australian operator achieved in 2025, converting multiple HOAs into binding SPAs. As a result, the company underlines that these agreements underscore its position as a trusted energy supplier across Asia and Europe.

George Gilboy, Woodside’s Vice President and Country Manager Japan, commented: “This agreement underscores Woodside’s role as a dependable energy partner for Japan, ensuring secure LNG supply during the critical winter months.

“Reliable access to energy supports regional stability, and Woodside’s global portfolio enables us to provide this, supporting our customers’ energy security.”

Woodside, which remains focused on building on this momentum in 2026 and beyond, also signed an LNG sale and purchase agreement a few months ago with Petronas.