Woodside Energy and Petronas sign 15-year LNG supply deal

Australia’s Woodside Energy and Malaysia multinational oil and gas firm Petronas have signed a non-binding Heads of Agreement for the supply for 1 million tonnes per annum (mtpa) to Malaysia for 15 years from 2028.

The agreement, signed by subsidiary Petronas LNG at the Energy Asia 2025 conference, is expected to support its efforts to ensure secure, flexible LNG supply to meet growing demand in Peninsular Malaysia and the broader Asia-Pacific region.

The parties are now working to convert the heads of agreement into a sales and purchase agreement.

The LNG would be supplied from Woodside’s global portfolio and “may include” the recently approved Louisiana LNG project in the US.

Mark Abbotsford, Woodside Executive Vice-President and Chief Commercial Officer, said it reflects the value global buyers see in the project, which has total permitted capacity of 27.6 mtpa.

In April, Woodside made a final investment decision to develop the foundational phase, which comprises three trains and 16.5 mtpa capacity.

Earlier this week Woodside said it is continuing “constructive consultation” with the federal government over the North West Shelf Joint Venture extension approval. Environmental approval was received at the end of May.