Woodside to supply Petronas with LNG under long-term agreement

Two energy majors, Australia’s Woodside Energy and Malaysia’s state-owned Petronas, have signed a non-binding heads of agreement (HOA) for a long-term supply of liquefied natural gas (LNG) to Malaysia.

Thanks to the deal inked between the duo’s subsidiaries, Petronas LNG and Woodside Energy Trading Singapore, the Australian major is set to deliver 1 million tons per annum (mtpa) of LNG to Malaysia for 15 years, starting in 2028.

According to Woodside’s CEO, Meg O’Neill, this is the first long-term LNG sales opportunity between the two companies.

“This agreement represents more than commercial alignment; it signals a shared commitment to advancing energy security and regional stability during a time of global transition. We’re excited about the potential this collaboration holds and the role it could play in supporting a secure, affordable, and lower-carbon energy future,” noted O’Neill.

The HOA is said to reflect the shared ambition of both companies to formally commit to deepening cooperation across the LNG value chain. The volumes would be supplied from Woodside’s global portfolio and may include the Louisiana LNG project, for which a final investment decision (FID) was made in late April.

“We are pleased to launch our new collaboration with Woodside, a leading supplier of LNG to Asia. We hope this will be the start of cooperation between PETRONAS and Woodside on future opportunities to support energy security and sustainability across the region,” said Shamsairi Ibrahim, Vice President of LNG Marketing & Trading at Petronas. 

Petronas believes the deal will support its efforts to ensure a secure and flexible LNG supply to meet the growing demand in Peninsular Malaysia and the broader Asia-Pacific region. The next steps include converting the HOA into a sales and purchase agreement. 

It has been a busy week for the Malaysian giant. An LNG supply deal with U.S. Commonwealth LNG was announced yesterday. Under it, Petronas will purchase 1 mtpa of LNG for 20 years. The Malaysian player also disclosed entering into a framework agreement with Eni for their proposed business combination.

Additionally, Petronas signed a small field asset production sharing contract (SFA PSC) with Seascape Energy, granting the latter the operatorship of the Temaris cluster. This will be the first development operated by Seascape.