Woodside Energy Signs LNG Export Deal with Western Australia Government
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 17 2026
0mins
Source: seekingalpha
Woodside Energy's stock rose by 9.28% as it crossed above the 5-day SMA, reflecting strong investor interest.
The company has secured an export agreement with the Western Australia government to export approximately 3 million metric tons of liquefied natural gas, which is crucial for meeting domestic market demands and ensuring a stable energy supply. This deal also includes a commitment to supply an additional 23 petajoules of gas by 2029, enhancing Woodside's accountability in the local market amid projected gas shortages in the region.
This strategic move not only strengthens Woodside's position in the LNG market but also aligns with the government's push for increased energy production, potentially leading to long-term growth and stability for the company.
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Analyst Views on WDS
About WDS
Woodside Energy Group Ltd is a global energy company. Its segments include Australia, International, Marketing and Corporate. 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. International segment is engaged in the exploration, evaluation, development, production and sale of LPG, 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, North West Shelf Project, Woodside Solar, Scarborough Energy Project, Beaumont New Ammonia Project, Sangomar, and others. It holds an interest in Woodside Louisiana LNG, which is an under-construction LNG production and export terminal in Lake Charles, Louisiana. The Sangomar 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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- Shareholder Rebellion: Prior to his dismissal, 81.8% of shareholders supported Manifold's re-election at BP's annual general meeting, indicating significant investor dissatisfaction and concerns over the company's governance and future direction.
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- Strategic Development Considerations: Woodside views the Browse project as a Western Australia-driven initiative that can backfill its North West Shelf gas plant, while Inpex's involvement could potentially push for a development linking Browse to its Ichthys LNG export project in Darwin.
- Importance of Energy Security: Woodside emphasizes that the development of the Browse to North West Shelf project could significantly contribute to the region's energy supply and economic prosperity, particularly at a time when energy security is increasingly critical.
See More
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- Pricing Strategy Issues: Woodside's sought liquefaction fee exceeds $2.80 per MMBtu, while the broader U.S. market rates are between $2.40 and $2.50, which may lead to potential customer loss and negatively impact the company's sales capabilities and market competitiveness.
- Market Competition Analysis: Compared to competitors, Cheniere Energy charges approximately $2.60 per MMBtu, while Venture Global's fees are as low as $2.30, suggesting that Woodside's pricing strategy may place it at a disadvantage in a highly competitive market.
- Customer Interest Maintained: Despite pricing challenges, CEO Liz Westcott stated that customer interest remains strong, and the company is satisfied with the progress of the Louisiana LNG project, indicating that potential opportunities still exist in the market.
See More
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- Production Volume Decrease: The company's production volumes declined by 8% from 49.1 million barrels of oil equivalent (MMboe) to 45.2 MMboe, indicating difficulties in resource extraction that could impact future supply capabilities.
- Sales Volume Increase: Despite the drop in production, sales volumes rose by 3% from 50.3 MMboe to 51.7 MMboe, suggesting that the company still possesses some resilience in market demand.
- Uncertain Market Outlook: The mixed performance may lead investors to question Woodside Energy's future growth potential, particularly against the backdrop of volatility in the global energy market.
See More
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- LNG Supply Constraints: The resumption of production at the North West Shelf follows cyclone disruptions, while Chevron's Wheatstone repairs are expected to take weeks, further tightening global LNG supply and potentially impacting future price trends.
- Sustainability Strategy: During the analyst call, Woodside emphasized its sustainability strategy, indicating a commitment to governance and environmental responsibility amid the energy transition, which may enhance investor confidence.
- Market Impact: Despite challenges, Woodside's revenue growth and production recovery could provide support for its stock price, while the tightening global LNG supply backdrop may further solidify the company's market position.
See More
