Woodside Energy Group Ltd. has entered into a significant agreement with China Resources Gas International to supply liquefied natural gas (LNG) to China, marking the first binding supply deal of its kind between Chinese and Australian companies in several years.
Under the terms of the deal, Woodside will deliver approximately 600,000 tons of LNG annually over a 15-year period, beginning in 2027. This agreement comes at a time when Chinese firms are seeking alternatives to U.S. gas supplies, following the implementation of tariffs by Beijing on American LNG exports last month.
“This marks the first time Woodside has independently signed a long-term LNG supply agreement with a Chinese customer,” said Mark Abbotsford, Executive Vice President and Chief Commercial Officer of Woodside, in a statement. “It is also the first time China Resources has committed to a 15-year LNG procurement deal.”
The agreement reflects a warming of relations between Australia and China, which had soured in recent years. Tensions peaked in 2020 when Australia, under then-Prime Minister Scott Morrison, called for an independent investigation into the origins of COVID-19, prompting Chinese firms to halt purchases of Australian fuel. Additional trade restrictions followed, including tariffs on Australian wine in 2021, which were only lifted in 2024, as well as bans on coal, metals, and agricultural products.
China Resources, a major city gas distributor in China, is currently constructing its Rudong LNG terminal in Jiangsu, which is expected to begin operations in early 2026, further solidifying the company’s commitment to securing reliable LNG supplies.
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