Woodside Energy Group Ltd (ASX: WDS) has announced it has signed a 15-year deal to supply gas to PETRONAS.
Under the agreement, Woodside will supply the Malaysian oil and gas company with 1 million tonnes of LNG per year from 2028.
Woodside stated that LNG would be supplied from Woodside's global portfolio and that it may include the recently approved Louisiana LNG project in the United States.
Woodside Executive Vice President and Chief Commercial Officer Mark Abbotsford said the deal marks a turning point for Woodside's presence in Asia.
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 secure LNG supply to meet growing demand in Malaysia and the Asia-Pacific region.
Shamsairi Ibrahim, PETRONAS Vice President of LNG Marketing and Trading, indicated that he expects further collaboration with Woodside.
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 agreement was formed at the Energy Asia 2025 conference in Kuala Lumpur with Woodside CEO Meg O'Neill and PETRONAS CEO of Gas and Maritime Business, Datuk Adif Zulkifli.
The Parties are now working to finalise the deal.
Woodside and PETRONAS share a long-standing relationship, having previously cooperated on exploration studies and research and development initiatives.
Woodside share price recovering
With the Woodside share price trading at around $25.65, it is still a long way off the highs it was hitting in 2024.
Back in February 2024, Woodside shares were changing hands for about $32.45 each.
As such, Woodside shareholders have seen their stock shed about 20% of its value in a year and a half.
But things have been looking better lately for Woodside shareholders.
The oil and gas producer's share price has gained about 33% since early April, when President Trump's tariffs shook global markets.
In fact, Woodside shares are up about 17% this month.
Rising oil prices following conflict in the Middle East have boosted the energy producer's share price.
But it was the recent government approval of its North West Shelf Project expansion plans that really launched the company's share price this month.
