Australian energy giant Woodside Energy and Malaysian national oil company PETRONAS have entered into a significant long-term partnership with the signing of a non-binding heads of agreement for the supply of 1 million tonnes per annum of LNG to Malaysia.
15-Year Supply Deal
The agreement, signed through PETRONAS subsidiary PETRONAS LNG Ltd, establishes a framework for LNG deliveries beginning in 2028 for a period of 15 years. The LNG supply will be sourced from Woodside’s global portfolio and may include production from the company’s recently approved Louisiana LNG project in the United States.
The heads of agreement reflects both companies’ shared commitment to deepening cooperation across the LNG value chain while building a relationship based on mutual trust, benefit, and success.
Strategic Significance
Woodside executive vice president and chief commercial officer Mark Abbotsford emphasised the importance of the partnership with PETRONAS, which is recognised globally as one of Asia’s most respected energy companies.
“This agreement marks the beginning of a new era of collaboration between Woodside and PETRONAS and is an important step towards what would be our first long-term LNG sales to Malaysia,” Abbotsford stated. “It reflects the value global buyers see in Woodside’s Louisiana LNG project and our reputation as a safe and reliable supplier of energy to Asia.”
Regional Energy Security
The agreement is designed to support PETRONAS’ efforts to ensure secure and flexible LNG supply to meet growing demand in Peninsular Malaysia and the broader Asia-Pacific region. This aligns with regional energy security objectives as demand for natural gas continues to expand across Asian markets.
PETRONAS vice president of LNG marketing & trading Shamsairi Ibrahim expressed optimism about the new collaboration, stating: “We are pleased to launch our new collaboration with Woodside, a leading supplier of LNG to Asia. We hope this will be the start of cooperation between PETRONAS and Woodside on future opportunities to support energy security and sustainability across the region.”
High-Level Endorsement
The agreement was formally exchanged at the Energy Asia 2025 conference in Kuala Lumpur, with senior executives from both companies present to witness the signing. Woodside CEO Meg O’Neill and PETRONAS executive vice president & CEO Gas & Maritime Business Datuk Adif Zulkifli attended the ceremony, highlighting the strategic importance both companies place on the partnership.
Established Partnership Foundation
The new agreement builds upon an existing relationship between Woodside and PETRONAS, with the companies having previously collaborated on various initiatives including exploration studies, research and development projects, and both spot and mid-term LNG sales and purchases.
Next Steps
Both parties are now working to convert the non-binding heads of agreement into a formal sales and purchase agreement. This process will involve finalising commercial terms, delivery schedules, and other contractual details necessary to implement the 15-year supply arrangement.
The partnership represents a significant milestone in Australia-Malaysia energy cooperation and demonstrates the continued importance of long-term LNG supply agreements in providing energy security across the Asia-Pacific region.
For more information visit www.woodside.com
