Woodside Energy Group Ltd (ASX: WDS) shares are marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $23.08. In morning trade on Tuesday, shares are changing hands for $23.35 apiece, up 1.2%.
For some context, the ASX 200 is up 0.1% at this same time.
Taking a step back, Woodside shares remain down 4.6% over 12 months. Though if we add the two fully franked dividends the company paid out over the year back in, investors will still be sitting on a modest gain today.
Woodside stock trades on a 7.2% fully franked trailing dividend yield.
Now, here's what's happening in Turkey.
Woodside shares gain on Turkish LNG deal
Overnight, Woodside announced that together with Turkey's BOTAS, it signed a sale and purchase agreement (SPA) for the long-term supply of liquefied natural gas (LNG).
Woodside shares could get long-term support from the deal, which will see the company supply BOTAS with a total of 5.8 billion cubic meters natural gas equivalent. That equates to around 500,000 tonnes of LNG a year. The LNG sales will start in 2030 and continue for up to nine years.
The LNG will mostly come from Woodside's still under-construction Louisiana LNG project in the United States, with the rest being sourced from the company's broader portfolio.
Commenting on the deal, Woodside executive vice president Mark Abbotsford said:
This supply agreement with BOTAS represents a strategic milestone for Woodside given it is our first long-term LNG supply arrangement with the Turkish market. It is yet another demonstration of the strength and flexibility of Woodside's diversified portfolio and ability to deliver on our global ambitions.
Woodside also appreciates the support shown by the Turkish and United States governments following the announcement of the HOA [Heads of Agreement] earlier this year.
What else did the ASX 200 energy stock report?
Woodside shares could also be getting a boost today from a separate announcement relating to the company's Beaumont New Ammonia (BNA) facility, located in Texas.
Management revealed that BNA has produced its first ammonia following the completion of systems testing. This marks the first phase of operations commissioning of the facility.
"These outcomes confirm the facility's production readiness and our ability to move toward commercial start-up following handover," Woodside vice president Beaumont New Ammonia Kellyanne Lochan said.
The company expects commercial production of ammonia from BNA to begin following handover to Woodside OCI Global in early 2026. Woodside is targeting production of lower-carbon ammonia in the second half of 2026.
Woodside shares could benefit long term from BNA, which has an annual production capacity of 1.1 million tonnes.
Management said the project is designed to support growing global demand for ammonia, lower-carbon ammonia, and hydrogen-adjacent products. They noted that BNA has the potential to roughly double US ammonia exports.
