Woodside Secures Landmark LNG Deal with China Resources Gas

Woodside Energy, Australia’s largest independent oil and gas company, has finalized a long-term agreement to supply liquefied natural gas (LNG) to China Resources Gas International. The 15-year contract, set to commence in 2027, will deliver approximately 0.6 million metric tons of LNG annually to support China’s growing energy demand.

This deal represents a significant milestone for Woodside, marking its first independently negotiated long-term LNG sales agreement with a Chinese buyer. The partnership strengthens the company’s presence in the Asian energy market while reinforcing China’s commitment to diversifying its natural gas supply sources.

China Resources Gas, a leading natural gas distributor in the country, plays a crucial role in ensuring stable and secure energy supplies for residential and industrial consumers. The agreement aligns with China’s broader strategy to increase natural gas consumption as part of its transition toward cleaner energy alternatives. By securing LNG from Woodside, China Resources Gas enhances its ability to meet domestic demand while reducing reliance on coal-fired power generation.

Woodside CEO Meg O’Neill emphasized the significance of the deal, stating that the company remains committed to providing reliable and competitive LNG solutions to international markets. “This agreement underscores the importance of LNG in ensuring energy security and supporting the transition to lower-carbon energy sources,” O’Neill said.

For Woodside, the contract reflects its strategy of expanding its LNG portfolio while securing long-term commitments from key global buyers. The deal also highlights Australia’s ongoing role as a major LNG exporter, with China being one of its largest energy trading partners.

The global LNG market has experienced significant volatility in recent years, with fluctuating demand and geopolitical tensions affecting supply chains. However, long-term agreements like this provide stability for both suppliers and buyers, ensuring predictable energy flows and pricing structures.

As the agreement takes effect in 2027, Woodside and China Resources Gas will work closely to finalize logistics and infrastructure arrangements. The partnership not only strengthens bilateral trade between Australia and China but also reinforces LNG’s role as a crucial component in the global energy transition.