China Resources Gas and Woodside Energy Sign 15-Year LNG Supply Agreement

Woodside Energy Group Ltd. has reached an agreement with China Resources Gas International to supply 600,000 tons of LNG per year to China Resources for a period of 15 years, with delivery starting in 2027. This is the first time that Chinese and Australian companies have reached a binding long-term LNG supply agreement in recent years.

Mark Abbotsford, Executive Vice President and Chief Commercial Officer of Woodside, said that this is the first time that Woodside has signed a long-term LNG sales agreement with a Chinese customer as an independent company. At the same time, this is also the first time that China Resources Gas has signed a 15-year LNG purchase contract.

Since former Australian Prime Minister Morrison pushed for an independent investigation into the origins of COVID-19 in 2020, China-Australia relations have hit a low point, causing Chinese companies to suspend plans to expand their Australian fuel purchases. China imposed tariffs on Australian wine in 2021 and imposed trade restrictions on Australian coal, metals and agricultural products until after 2023. The signing of this agreement marks a new stage in the strategic cooperation between the two countries in the energy field.

China Resources Gas is one of the largest city gas distributors in China. Its liquefied natural gas receiving station in Rudong, Jiangsu is still under construction and is expected to be put into operation in early 2026.