Woodside Energy Signs LNG Export Deal with Western Australia Government
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 17 2026
0mins
Should l Buy WDS?
Source: seekingalpha
- Export Agreement Secured: Woodside Energy has signed a deal with the Western Australia government to export approximately 3 million metric tons of liquefied natural gas, aimed at meeting domestic market demands and ensuring stable energy supply.
- Domestic Market Commitment: Under Western Australia's domestic gas policy, LNG exporters are required to reserve about 15% of their production for local markets, with Woodside committing to supply an additional 23 petajoules of gas by 2029, enhancing its accountability in the local market.
- Policy Context Analysis: Despite a long-standing domestic reservation policy, Western Australia is projected to face gas shortages by 2030, prompting the government to intensify pressure on large gas producers to provide more energy as the state transitions away from coal-fired power.
- Infrastructure Agreement Amendment: The deal was secured through an amendment to the state agreement governing the use of infrastructure supporting Woodside’s Pluto gas project, demonstrating a collaborative effort between the government and the company to address future energy challenges.
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Analyst Views on WDS
About WDS
Woodside Energy Group Ltd is a global energy company. Its segments include Australia, International and Marketing. The Australia segment is engaged in the exploration, evaluation, development, production and sale of liquefied natural gas, pipeline gas, crude oil and condensate and natural gas liquids in Australia. International segment is engaged in the exploration, evaluation, development, production and sale of pipeline gas, crude oil and condensate and natural gas liquids in international jurisdictions outside of Australia. Marketing segment is engaged in the marketing, shipping and trading of its oil and gas portfolio. Its projects include Pluto LNG, the North West Shelf Project, Macedon, Sangomar, the lower carbon ammonia project in Texas, and others. It holds an interest in Woodside Louisiana LNG, which is an under-construction LNG production and export terminal in Calcasieu Parish, Louisiana. The Sangomar, containing both oil and gas, is located 100 kilometers south of Dakar.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Climate Disaster Effects: The cyclone is estimated to have disrupted Australian LNG supply by over 30 million metric tons per year, and combined with the shocks from the Middle East conflict, over 25% of global LNG supply has been disrupted, exacerbating market tensions.
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- Global Supply Impact: The Wheatstone plant accounted for 2.4% of global LNG trade in February, shipping 11 cargoes—10 to Japan and 1 to Thailand—meaning its production halt will significantly disrupt the global supply chain.
- Climate Disaster Effects: The cyclone is estimated to have disrupted Australian LNG supply by over 30 million metric tons per year, and combined with the shocks from the Middle East conflict, over 25% of global LNG supply has been disrupted, exacerbating market tensions.
- Other Facility Recovery Status: While Wheatstone is affected, Chevron's Gorgon facility has returned to full production levels, and Woodside Energy is working to restore normal operations at its North West Shelf facility, indicating ongoing recovery efforts within the industry.
See More
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- Investor Confidence Boost: As energy prices stabilize and signs of economic recovery emerge, investor confidence in the energy sector has strengthened, potentially attracting more capital into the field and further boosting stock prices.
- Positive Industry Outlook: Analysts indicate that with the gradual recovery of the global economy, energy demand is expected to continue growing, particularly in the integration of renewable and traditional energy sources, which may present new growth opportunities for related companies.
- Supportive Policy Factors: Government support policies for the energy sector, including subsidies for renewable energy and reasonable regulation of traditional energy, may create a favorable environment for the long-term development of the industry, thereby enhancing investor confidence.
See More
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- Production Disruption: Tropical Cyclone Narelle has severely disrupted production at Chevron (CVX) and Woodside (WDS)'s two largest liquefied natural gas (LNG) plants in Australia, potentially exacerbating the global energy market's supply crisis.
- Facility Overview: Chevron's Gorgon facility is Australia's largest LNG export facility, producing 15.6 million metric tons annually, while the Wheatstone facility produces 8.9 million tons per year, together accounting for approximately 6.5% of global LNG supply and nearly half of Western Australia's domestic gas supply.
- Restoration Plans: Chevron has stated that it is working to restore production at its Gorgon and Wheatstone facilities, while Woodside confirmed that production at its Karratha gas plant has been disrupted, with plans to resume once workers can be sent back offshore.
- Market Impact: The production outages could place additional pressure on Asian economies reliant on energy imports, particularly as the ongoing Middle East war has already disrupted the LNG supply chain and driven prices higher.
See More
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- Strategic Implications: By taking control of this project, Woodside can optimize production processes and improve resource efficiency, positioning itself more favorably in the global ammonia market.
- Market Impact: This move may bolster investor confidence in Woodside Energy, potentially driving its stock price higher, particularly against the backdrop of increasing ammonia demand.
- Future Outlook: The takeover is expected to create new growth opportunities for Woodside Energy, especially as ammonia's potential as a clean energy source gains more attention in the context of the sustainable energy transition.
See More
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- Operational Control Transition: Woodside Energy Group has assumed operational control of the Beaumont New Ammonia facility in southeast Texas, completing performance testing and handover from OCI Global, marking a significant expansion in the ammonia production sector.
- Capacity and Market Impact: The facility has a production capacity of up to 1.1 million tonnes per annum, which is expected to nearly double US ammonia exports, thereby contributing to regional economic growth and enhancing Woodside's competitive position in the market.
- Low-Carbon Ammonia Production Outlook: Although ammonia production commenced in December 2025, the production of lower-carbon ammonia is now likely to occur after 2026 due to construction issues at the third-party feedstock supply facility, impacting the company's long-term strategic goals.
- Stock Price Reaction: Woodside Energy shares in Australia gained around 2.4%, trading at A$34.42, reflecting market optimism regarding the operational launch of its new facility.
See More
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- Capacity and Diversification: The facility boasts a production capacity of up to 1.1 million metric tons of ammonia per year, enhancing Woodside's product portfolio diversity and strengthening its competitive position in the global energy market.
- Delayed Low-Carbon Production: While traditional ammonia production commenced in December, the anticipated start of lower-carbon ammonia production has been postponed until after 2026 due to construction issues at a third-party feedstock supply facility, impacting the company's short-term strategic plans.
- Acquisition Context: Woodside acquired the Beaumont project for $2.35 billion in September 2024, achieving a milestone with the first production of traditional ammonia in December, laying the groundwork for its presence in the ammonia market.
See More
