Woodside Energy and PETRONAS have signed a non-binding agreement for the long-term supply of 1 million tonnes of LNG annually to Malaysia from 2028 for 15 years. Sourced from Woodside’s global portfolio, the deal aims to strengthen LNG cooperation and support energy security across Malaysia and the Asia-Pacific region.
Woodside Energy and PETRONAS, through its subsidiary PETRONAS LNG Ltd (PLL), have signed a non-binding Heads of Agreement (HOA) aimed at establishing a long-term liquefied natural gas (LNG) supply arrangement. Under this preliminary agreement, Woodside would supply approximately one million tonnes of LNG per annum to Malaysia starting in 2028, with the contract expected to last for 15 years.
The proposed LNG volumes will be sourced from Woodside’s global portfolio, potentially including the company’s recently sanctioned Louisiana LNG project in the United States. This initiative reflects a shared strategic vision between the two companies to strengthen collaboration across the LNG value chain. Both parties see this partnership as a step towards fostering a mutually beneficial relationship built on trust and long-term cooperation.
Mark Abbotsford, Executive Vice President and Chief Commercial Officer at Woodside, expressed optimism about the new agreement, describing it as a significant milestone in enhancing Woodside's presence in Asia. He emphasized that the deal represents Woodside’s first potential long-term LNG supply arrangement with Malaysia, underlining the confidence international buyers place in the Louisiana LNG project. Abbotsford also highlighted Woodside’s strong track record as a dependable and safe energy supplier to the Asian market.
From PETRONAS' perspective, this agreement aligns with its strategic objective to secure a stable and adaptable LNG supply that meets the increasing energy demands of Peninsular Malaysia and the larger Asia-Pacific region. Shamsairi Ibrahim, Vice President of LNG Marketing & Trading at PETRONAS, noted that this collaboration marks the beginning of a promising relationship with Woodside. He emphasized the potential for further cooperation in addressing regional energy security and advancing sustainable energy solutions.
The HOA was officially exchanged during the Energy Asia 2025 conference held in Kuala Lumpur. The ceremony was attended by Woodside CEO Meg O’Neill and PETRONAS Executive Vice President and CEO of Gas & Maritime Business, Datuk Adif Zulkifli, signifying high-level support for the proposed partnership.
While the HOA is currently non-binding, both companies are actively working towards formalizing it into a definitive sales and purchase agreement. The new deal would build on an already established relationship between Woodside and PETRONAS. The two companies have previously collaborated on joint exploration efforts, research and development projects, and various LNG transactions involving spot and mid-term contracts.
The agreement marks a pivotal point in their partnership, showcasing the importance of international collaboration to ensure reliable and sustainable energy supplies in a rapidly evolving global energy landscape.
