Woodside secures five-year LNG supply deal with JERA for winter deliveries

Woodside Energy Trading Singapore has finalised a sale and purchase agreement (SPA) with JERA to supply three cargoes of liquefied natural gas (LNG) annually during Japan’s peak winter months over a five-year period, starting in 2027.

The agreement, which follows a heads of agreement (HoA) signed in June 2025, will see approximately 200,000 tonnes (t) of LNG delivered to Japan each winter between December and February under a delivered ex-ship basis.

Woodside plans to source the LNG from its global portfolio, including assets such as Scarborough, North West Shelf, Pluto LNG and the yet-to-be-operational LALNG.

Woodside vice-president and Japan country manager George Gilboy said: “This agreement underscores Woodside’s role as a dependable energy partner for Japan, ensuring secure LNG supply during the critical winter months.

“Reliable access to energy supports regional stability, and Woodside’s global portfolio enables us to provide this, supporting our customers’ energy security.”

This SPA aims to ensure reliable access to energy for Japan during high-demand winter months and is part of a broader framework established by the Government of Japan and the Japan Bank of International Cooperation (JBIC) to enhance energy security through strategic partnerships.

It builds on Woodside’s sale of a 15.1% non-operating interest in the Scarborough joint venture (JV) to JERA in November 2024, as well as a loan agreement with JBIC supporting the Scarborough Energy Project.

Woodside obtained around $1.4bn (A$2.09bn) from selling the equity in the Scarborough JV, a sum that includes both the sale price and reimbursed expenses.

JERA executive officer and LNG division head Kosuke Tanaka said: “Building on our partnership with Woodside, this agreement enhances our supply resilience and flexibility to respond more effectively to seasonal demand fluctuations, particularly the winter season, supporting Japan with a stable and reliable energy supply.”

Earlier this week, Woodside reported that the floating production unit for the Scarborough gas field made its way to the Carnarvon Basin in Australian waters. The Scarborough field is expected to feed the Pluto LNG plant once it begins production of natural gas.

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