Woodside Energy Group Ltd. has finalized a long-term agreement to supply liquefied natural gas (LNG) to China Resources Gas International. This marks the first binding LNG supply deal between Chinese and Australian companies in several years.
Under the agreement, Woodside will deliver approximately 600,000 tons of LNG annually for 15 years, starting in 2027. The company announced the deal in a statement on Monday.
The agreement comes as Chinese companies hesitate to purchase additional gas from the United States, the world’s largest LNG exporter. Last month, Beijing imposed tariffs on American fuel, making US gas less attractive to Chinese buyers.
“This is the first time Woodside, on a standalone basis, has signed a long-term LNG sales agreement with a Chinese customer,” said Mark Abbotsford, Woodside’s Executive Vice President & Chief Commercial Officer. He also noted that this is China Resources’ first LNG procurement deal spanning 15 years.
Relations between Australia and China have improved since 2020 when tensions escalated over Canberra’s call for an independent investigation into the origins of COVID-19. In response, Chinese companies temporarily halted plans to buy additional Australian fuel.
Beijing also imposed tariffs on Australian wine in 2021 and restricted imports of coal, metals, and agricultural products. However, it lifted the wine tariffs three years later.
China Resources is one of the country’s largest city gas distributors. The company is currently building the Rudong LNG terminal in Jiangsu province, which is expected to begin operations in early 2026.
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