The Woodside Energy Group Ltd (ASX: WDS) share price is marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) oil and gas stock closed yesterday trading for $28.51. In early afternoon trade on Thursday, shares are changing hands for $28.80 apiece, up 1.0%.
For some context, the ASX 200 is up 0.9% at this same time.
The Woodside share price looks to be catching tailwinds on two fronts today.
First, the oil price gained 0.8% overnight. Brent crude is currently trading for US$85.75 per barrel, up 0.8%. That sees the benchmark oil price up just over 5% in a month.
ASX investor interest also appears to be piqued by Woodside's gas supply deal with Tawain.
What's boosting the Woodside share price?
In a media announcement this morning, Woodside reported that it has signed a sale and purchase agreement (SPA) with Taiwan's CPC Corporation (CPC) for the long-term supply of liquefied natural gas (LNG) to the island nation.
The Woodside share price could gain some long-term support from the agreement, which will see the company supply approximately six million tonnes of LNG over 10 years, commencing this month.
The agreement could potentially be extended for another 10 years, running from 2024 to 2043, subject to conditions and agreement on terms for this period. That would see Woodside deliver an additional 8.4 million tonnes of LNG to CPC.
CPC is Taiwan's state-owned oil and gas company, responsible for supplying sufficient energy to the domestic market. It is also the country's sole importer and supplier of natural gas.
Woodside said that the LNG delivered to CPC under the SPA will be sourced from volumes across its global portfolio.
Commenting on the agreement, Woodside CEO Meg O'Neil said:
This agreement with CPC for long-term supply to Taiwan is a first for Woodside and another demonstration of the ongoing demand for Australian LNG in Asian markets.
It also reinforces the value our customers place on Woodside's ability to maintain safe and reliable supply of energy into the 2030s.
Is the ASX 200 energy stock a buy?
Despite today's lift, the Woodside share price remains down 16% over the past year.
At the current $28.80 a share, a number of analysts see significant potential upside.
BW Equities' Tom Bleakley noted that, "Woodside recently announced it had achieved first oil from the Sangomar field in Senegal."
And despite the stock gaining more than 6% over the past month, he said "The shares are still trading well below $39 achieved in August 2023."
Bleakley also has a 'buy' rating on Woodside because of the stock's "appealing dividend yield". Woodside shares currently trade on a fully franked trailing yield of 7.5%.
