Woodside’s new supply agreements with Uniper are set to bolster its stake in the global gas market.
Woodside Energy has signed long-term LNG supply agreements with German utility Uniper, bolstering its stake in the global gas market.
The 13-year deals cover up to two million tonnes per annum of liquefied natural gas, roughly half of which is earmarked for supply from Woodside’s proposed Louisiana LNG facility in the United States.
The energy giant will deliver this proportion of the commodity on a free-on-board basis, meaning it’s responsible for the LNG until it docks in a port.
Woodside plans to source the rest of the LNG from its Australian production and global trading portfolio. Uniper will be responsible for shipping in these instances.
According to Uniper, the deal covers roughly 3 per cent of Germany’s annual gas consumption, based on 2024 estimates.
Louisiana came into the Woodside fold back in 2024, and the agreements announced today hinge on a final investment decision for the project.
In the coming years, Woodside plans to develop the first three trains of the five-train Louisiana plant, bringing another 16.5 million tonnes of initial, yearly production capacity online.
To that end, Woodside chief executive Meg O’Neill believes the Uniper deals mark an important milestone for the US project.
“Uniper’s commitment speaks volumes about Woodside’s track record as a trusted LNG provider,” she said.
Louisiana LNG, based on the Gulf of Mexico, is marketed as Woodside’s largest growth project.
Last week, the company announced it would sell a 40 per cent stake in Louisiana LNG to US investment firm Stonepeak, which committed to fund $5.7 billion of the project’s cost under the deal.
Woodside has also signalled it is in talks with other potential partners as it weighs up further sell-downs.
The company signed a revised engineering, procurement and construction contract with Bechtel in December 2024, covering Louisiana LNG’s three-train foundational phase.
Big picture, Uniper chief executive Michael Lewis said the agreements will help meet European demand and underpin Germany’s energy transition.
“This deal will support our security of supply and flexible generation strategy,” he said.
Mr Lewis also noted that Woodside’s LNG could back new gas-fired power plants, complementing Germany’s renewable energy infrastructure.
“Long-term LNG contracts like this contribute directly to the competitiveness of European industry,” he continued.
This isn't Woodside's first deal with the German utility firm: the energy behemoth has been supplying LNG to Uniper since 2022.
The company recently hired Sarah Bairstow, the former CEO of Mexico Pacific, to lead its Louisiana project.
Ms Bairstow will start in early May as senior vice president of the US facility.
Looking ahead, Ms O’Neill said the company remains focused on delivering dependable energy amid rising global demand, especially in Europe.
“These agreements reinforce the project’s unique advantages and economic competitiveness,” she said.
The final investment decision on Louisiana LNG is reportedly imminent.
