AUST Business today (extracts): WOODSIDE, PETRONAS IN LNG SUPPLY...

AUST Business today (extracts):
WOODSIDE, PETRONAS IN LNG SUPPLY TALKS
Valerina - Changarathil
Woodside Energy and Malaysian multinational oil and gas company Petronas are discussing a 15-year LNG supply deal from 2028, with some of it coming from Woodside’s proposed facility in the US.
A non-binding heads of agreement for the supply of 1 million tonnes per annum of LNG to Malaysia has been signed, Woodside told investors. The LNG would be supplied from Woodside’s global portfolio and may include the recently approved Louisiana LNG project. “The [heads of agreement] reflects the shared ambition of both companies to formally commit to deepening co-operation across the LNG value chain, building a relationship of mutual trust, benefit and success,” Woodside said. “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.”
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In April, Woodside agreed to sell 40 per cent of its proposed Louisiana facility to US infrastructure investor Stonepeak, in a bid to temper investor concerns about the capacity of the energy giant to fund its expansion plans and reward shareholders at the same time.Under the terms of the deal, Stonepeak will provide $US5.7bn towards the expected spend on the foundation development of Louisiana LNG, which Woodside said is worth about 75 per cent of project capital expenditure in both 2025 and 2026. The transaction aimed to temper concerns about the strain on Woodside’s balance sheet, which had worried investors.

Woodside has embarked on sustained expansion as it moves to bolster LNG production to meet rising global demand. That was a key rationale for Woodside when it announced its acquisition of Driftwood from US LNG company Tellurian in a deal worth $US1.2bn. The buyout catapulted it into one of the world’s biggest LNG players.

Woodside subsequently renamed Driftwood to Louisiana LNG. Woodside said at the time it was in further talks with would-be investors in the project. Saudi Aramco and Japanese entities — already partners of Woodside in its Scarborough LNG development — have been cited as potential suitors.