By Amanda Lee
Australia's Woodside Energy has signed a long-term deal with China Resources Gas International to supply liquefied natural gas to China.
The agreement, which begins in 2027, involves Woodside supplying about 0.6 million tons of the fuel annually over 15 years, the Australian energy company said in a statement Monday.
Shares in the Chinese company were last up 3.5% at 28.40 Hong Kong dollars, equivalent to US$3.65, in Hong Kong trading, outperforming the benchmark Hang Seng Index.
"This marks the first time Woodside on a standalone basis has signed a long-term sale agreement with a customer in China, Asia's largest consuming market for LNG," said Woodside executive vice president & chief commercial officer Mark Abbotsford.
The deal with China Resources is Woodside's fourth long-term LNG sales agreement in Asia since the beginning of 2024.
It also marks the first time that China Resources has signed an agreement to procure LNG over a period of 15 years, Abbotsford added.
The move shows the depth and length of demand for LNG in Asian markets as nations in the region look to secure energy supplies, he said.
China Resources Gas Group Chairman Yang Ping said the agreement could pave the way for more corporation between the two companies globally in the future.
Write to Amanda Lee at amanda.lee@wsj.com
(END) Dow Jones Newswires
March 16, 2025 23:36 ET (03:36 GMT)
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