Australian oil and gas company Woodside and Malaysia’s Petronas have finalised an agreement for the supply of 1 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) to Malaysia from 2028 for a period of 15 years.
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Under the agreement, LNG will be supplied from Woodside’s global portfolio, which may include volumes from the recently approved Louisiana LNG project in the United States.
Woodside executive vice president and chief commercial officer Mark Abbotsford said, “Finalising this long-term LNG supply agreement with Petronas represents a strategic milestone for Woodside as it is our first long-term LNG supply arrangement with Malaysia.
“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 deal also supports Petronas’ efforts to enhance energy security in Peninsular Malaysia by integrating upstream gas developments with LNG imports to meet rising demand from the power and industrial sectors, driven by data centre growth, the wider adoption of artificial intelligence technologies and the transition away from coal-fired generation.
Petronas vice president of LNG marketing and trading Shamsairi Ibrahim said, “As a responsible energy company, Petronas is committed to safeguarding Malaysia’s energy security while advancing the transition to a lower carbon future.
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“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.”
