Woodside Energy Trading Singapore has finalised a sale and purchase agreement (SPA) with Petroliam Nasional (Petronas) subsidiary Petronas LNG Limited (PLL) for the supply of one million tonnes per annum (mtpa) of liquefied natural gas (LNG) to Malaysia.

This 15-year agreement follows a non-binding heads of agreement inked in June reflecting the companies' mutual intent to enhance cooperation within the LNG value chain.

Starting from 2028, Woodside will supply LNG from its global portfolio, potentially including volumes from the Louisiana LNG project in the US, which recently received approval.  

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 agreement also backs Petronas’ strategy to improve energy security in Peninsular Malaysia by combining upstream gas developments with LNG imports.

This approach seeks to address the increasing requirement for energy within the power and industrial sectors, fuelled by the rise of data centres, the adoption of AI solutions and the transition away from coal-fired generation.

Petronas LNG marketing & trading vice-president 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.

“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.”