KUALA LUMPUR / PERTH, 10 September 2025 — Woodside Energy Trading Singapore Pte Ltd and PETRONAS LNG Ltd (PLL) have inked a landmark 15-year sale and purchase agreement (SPA) for the supply of 1 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) to Malaysia, beginning in 2028. The deal represents a critical step in reinforcing Malaysia’s energy security at a time of rising domestic demand and accelerating energy transition.
The agreement formalises a non-binding Heads of Agreement signed in June 2025 into a binding long-term commitment. LNG will be sourced from Woodside’s global portfolio, with potential volumes drawn from its newly approved Louisiana LNG project in the United States, highlighting the company’s diversified supply base and global reach.
For Malaysia, the long-term deal arrives at a pivotal moment. Domestic demand for natural gas continues to climb, driven by expansion of power generation, rapid growth of energy-hungry data centres, adoption of artificial intelligence technologies, and the gradual shift away from coal-fired electricity generation. By integrating upstream domestic gas resources with strategic LNG imports, PETRONAS is positioning itself to balance supply security with the country’s low-carbon transition goals.
“This long-term LNG supply agreement with PETRONAS represents a strategic milestone for Woodside as it is our first such arrangement with Malaysia,” said Mark Abbotsford, Woodside’s Executive Vice President & Chief Commercial Officer. He emphasised that the SPA underscores Woodside’s ability to deliver flexible and reliable LNG solutions to support regional partners.
From PETRONAS’ perspective, the deal highlights its dual focus on energy security and climate responsibility. Shamsairi Ibrahim, Vice President of LNG Marketing & Trading at PETRONAS, stated: “As a responsible energy company, PETRONAS is committed to safeguarding Malaysia’s energy security while advancing the transition to a lower carbon future. We see natural gas as a long-term solution in this journey, and our collaboration with Woodside Energy represents an important step towards ensuring reliable and flexible supply for Malaysia’s growing economy.”
The agreement deepens a long-standing relationship between Woodside and PETRONAS, which has included exploration studies, research collaborations, and shorter-term LNG trades in both spot and mid-term markets. Analysts note that the SPA provides both stability and flexibility, reflecting how LNG will remain a cornerstone of Asia-Pacific’s energy mix as the region strives to balance decarbonisation with economic growth.
