Woodside Energy Group Ltd (ASX: WDS) shares are slipping again on Tuesday as weaker oil prices weigh on the energy sector.
At the time of writing, the Woodside share price is down 1.01% to $28.48.
That adds to a softer recent run for the ASX energy stock. Woodside shares are now down around 11% over the past month, although they remain about 20% higher since the start of 2026.
That strong start to the year came on the back of higher oil prices, which lifted sentiment across parts of the energy sector.
However, oil prices have pulled back today, and that appears to be weighing more heavily on Woodside shares than the company's latest announcement.
Here's what the company told investors.
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Woodside signs a new gas deal
According to the release, Woodside said it has signed a sale and purchase agreement with Alcoa Corporation (ASX: AAI).
Under the agreement, Woodside will supply 31.1 petajoules of domestic gas from its Western Australian operations to Alcoa's alumina refineries in the state.
The gas will be supplied between 2027 and 2030.
Woodside said the agreement continues a longstanding supply relationship with Alcoa and supports local industries in Western Australia.
Alcoa's refineries produce alumina, which is the feedstock used to make aluminium. Aluminium is used across the construction, manufacturing, and energy sectors.
Woodside Executive Vice President, Marketing & Chief Commercial Officer, Mark Abbotsford, welcomed the agreement and said the company is continuing to bring gas to the Western Australian market.
The company also said the agreement supports local jobs and contributes to the state's energy security later this decade.
Why the deal is worth watching
While this isn't the kind of announcement that is likely to rapture investors into a cheer, it still gives the market something to note.
The agreement adds to Woodside's domestic gas position in Western Australia and locks in another customer for supply later this decade.
It also follows the Western Australian government's approval in December 2025 to extend the operation of the Pluto-Karratha Gas Plant Interconnector.
Woodside has been supplying domestic gas to Western Australia for more than 40 years.
In 2025, its share of Western Australian natural gas production was 90.3 petajoules. That represented about 21% of the state's domestic gas supply.
Oil prices remain the bigger driver
The gas deal is a positive update, but it isn't the main driver of Woodside's shares today.
Brent crude is trading below US$78 a barrel after easing again on Tuesday, while crude oil is sitting near US$74 a barrel.
According to Trading Economics, oil steadied as traders weighed signs of progress in US-Iran talks following pressure yesterday.
Washington also granted Iran a 60-day licence to sell oil, raising hopes of a faster recovery in global supply.
Furthermore, traffic through the Strait of Hormuz has picked up, with producers including Kuwait and the UAE finding alternative routes to export energy.
That has taken some heat out of oil prices after they helped support Woodside shares earlier in the year.
