AUS
NZ
UK
CA
USA
IND
Woodside (ASX:WDS) has signed a significant Sale and Purchase Agreement (SPA) with JERA, marking a milestone in its long-term supply of liquefied natural gas (LNG) to Japan. Under this agreement, Woodside will supply approximately 0.4 million tonnes of LNG annually, equivalent to six cargoes per year, over a period of 10 years. The deliveries will commence in April 2026, with LNG sourced from Woodside's global portfolio of assets.
Strengthening Ties with JERA
This agreement builds on the strategic relationship between the two companies. Earlier this year, in February, Woodside and JERA reached a deal for the sale of a 15.1% non-operating participating interest in the Scarborough Joint Venture. The SPA is seen as an extension of this collaboration, as the two energy companies continue to explore further business opportunities together. Mark Abbotsford, Woodside's Executive Vice President and Chief Commercial Officer, emphasized that this agreement highlights the ongoing commitment to their partnership.
Supporting Japan’s Energy and Decarbonisation Goals
Japan remains one of the largest consumers of LNG, and energy security is a critical concern for the country. The new deal aligns with Japan's long-term energy needs, ensuring a reliable supply of natural gas while supporting its decarbonisation efforts. LNG plays a crucial role in Japan's energy mix, providing a cleaner alternative to coal and other fossil fuels as the country seeks to reduce its carbon emissions.
Scarborough Joint Venture and Future Prospects
The SPA follows the earlier agreement regarding the Scarborough Joint Venture, in which Woodside agreed to sell a 15.1% non-operating interest to JERA. The completion of this transaction is expected by the end of 2024, further solidifying the business relationship between the two companies. This joint venture, coupled with the long-term LNG supply agreement, positions Woodside and JERA to capitalize on future opportunities in the energy sector.
