Woodside signs long-term LNG supply agreement with Taiwan's CPC Corporation

Australia's Woodside Energy has inked a sale and purchase agreement (SPA) with CPC Corporation, Taiwan (CPC) for the long-term supply of liquefied natural gas (LNG) to Taiwan.

Under the terms of the SPA, Woodside Energy will supply approximately six million tonnes of LNG over a period of ten years, starting in July 2024. The agreement also includes a provision for Woodside to deliver an additional 8.4 million tonnes of LNG over a further ten-year period, from 2034 to 2043, pending specific conditions and mutual agreement on terms for this extended period.

The LNG supplied to CPC will be sourced from Woodside’s global portfolio, ensuring a consistent and reliable supply chain.

Strategic significance

Meg O’Neill, CEO of Woodside Energy, welcomed the SPA, highlighting its importance as the company’s first long-term sales agreement with Taiwan. "This agreement with CPC for long-term supply to Taiwan is a first for Woodside and another demonstration of the ongoing demand for Australian LNG in Asian markets. It also reinforces the value our customers place on Woodside’s ability to maintain safe and reliable supply of energy into the 2030s," she stated.

This deal is not only a milestone for Woodside but also a testament to the company's capability in meeting the energy demands of the rapidly growing Asian markets, particularly Taiwan.

CPC Corporation, Taiwan, is the state-owned oil and gas company responsible for ensuring a steady supply of energy to the domestic market. CPC’s operations span across various sectors including oil and gas exploration and production, refining, petrochemicals, lubricants, solvents, and chemicals. Notably, CPC is the sole importer and supplier of natural gas in Taiwan.

With this agreement, CPC aims to secure a stable and long-term supply of LNG to support Taiwan's energy needs, furthering its mission to provide sufficient energy for the country's economic growth and stability.

The SPA between Woodside and CPC Corporation marks a pivotal development in the energy landscape, reinforcing the strong trade relations between Australia and Taiwan. This agreement not only secures a decade-long supply of LNG to Taiwan but also lays the groundwork for future collaborations, ensuring energy security and fostering economic growth in the region.