Australian energy company Woodside Energy announced on Monday that it has entered into a long-term sale and purchase agreement with China Resources Gas International for the supply of liquefied natural gas (LNG) to China.

Under the terms of the agreement, Woodside will deliver approximately 0.6 million metric tons of LNG annually for a period of 15 years. The deliveries are scheduled to commence in 2027.

This agreement represents Woodside's first independent long-term LNG sales contract with a Chinese buyer. Additionally, it marks the first time China Resources Gas has committed to a 15-year LNG procurement deal, according to Woodside. The agreement underscores the growing importance of LNG as a crucial component in China's energy mix, as the country continues to diversify its energy sources and reduce its reliance on coal.

Woodside's latest deal highlights the ongoing push for cleaner energy solutions in Asia. With the global energy market shifting focus toward more sustainable options, LNG has become an increasingly vital resource for meeting rising energy demands while reducing environmental impacts. This strategic contract with China Resources Gas further solidifies Woodside's presence in the rapidly expanding Asian market.

The Australian energy giant has actively pursued long-term contracts to strengthen its foothold in Asia's LNG sector. Since early 2024, Woodside has successfully signed four such agreements tailored to meet the region's growing demand for cleaner energy solutions. By securing multiple contracts, Woodside demonstrates its commitment to becoming a leading supplier in the energy transition movement.

For China, this partnership aligns with its broader strategy to increase LNG imports, helping the country reduce carbon emissions while supporting industrial and residential energy needs. The partnership with Woodside provides China Resources Gas with a stable and reliable LNG supply, critical for ensuring energy security and meeting environmental targets.

It is noted that LNG plays a pivotal role in helping nations achieve their decarbonization goals. Natural gas emits significantly fewer greenhouse gases than coal and oil, making it a preferred choice for countries seeking to reduce their carbon footprint without compromising energy reliability.

Woodside's commitment to securing long-term agreements reflects its strategy to leverage LNG's potential as a transitional energy source. As global markets shift towards renewable energy, LNG remains essential in supporting this transition by offering a stable and cleaner energy option.

In addition to strengthening bilateral trade between Australia and China, this agreement underscores the economic significance of LNG as a driving force behind sustainable energy partnerships. With LNG demand projected to rise steadily in the coming years, strategic partnerships like this will be crucial in ensuring supply stability and advancing clean energy initiatives.