Woodside Energy (Woodside) and Petronas have signed a non-binding heads of agreement (HOA) for the supply of 1 million tonnes per annum of LNG to Malaysia from 2028 for a period of 15 years.
The LNG would be supplied from Woodside’s global portfolio and may include the recently approved Louisiana LNG project in the US. The HOA reflects the shared ambition of both companies to formally commit to deepening cooperation across the LNG value chain, building a relationship of mutual trust, benefit and success.
Woodside executive vice president & chief commercial officer Mark Abbotsford, says: ‘This agreement marks the beginning of a new era of collaboration between Woodside and Petronas and is an important step towards what would be our first long-term LNG sales to Malaysia. It reflects the value global buyers see in Woodside’s Louisiana LNG project and our reputation as a safe and a reliable supplier of energy to Asia.’
The agreement is expected to support Petronas’ efforts to ensure secure, flexible LNG supply to meet growing demand in Peninsular Malaysia and the broader Asia-Pacific region.
Shamsairi Ibrahim, vice president of LNG marketing & trading, Petronas adds: ‘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.’
The parties are now working to convert the HOA into a sales and purchase agreement. Woodside and PETRONAS share a long-standing relationship, having previously cooperated on exploration studies and research and development initiatives along with both spot and mid-term LNG sales and purchases.
