Sydney, Jan 15, 2026, 17:27 (AEDT) — After-hours
- Woodside (ASX:WDS) ended up 0.4% at A$24.02 after a new winter LNG supply agreement with Japan’s JERA
- The deal starts in 2027 and targets peak winter demand months in Japan
- Traders are now looking ahead to Woodside’s late-January quarterly update for project timing and sales clues
Woodside Energy Group Ltd (ASX:WDS) shares rose 0.4% to end at A$24.02 on Thursday, after trading between A$23.77 and A$24.25. Japan’s largest power generator JERA said it signed a five-year winter LNG supply agreement with Woodside from 2027, covering three cargoes a year.
The timing matters because Woodside is selling into a market that is still short of winter flexibility. LNG — liquefied natural gas — is often bought years ahead, and winter cargoes can command a premium when demand spikes.
For investors, a contract like this is not a big earnings line on its own. It is a signal check: can Woodside keep adding buyers as it pushes new Australian supply towards first production.
Woodside said the sale and purchase agreement, a binding supply contract, covers three LNG cargoes (about 0.2 million tonnes) a year for five winters, delivered ex-ship — meaning the seller handles delivery to the buyer’s port. The company said volumes will be sourced from its portfolio including Scarborough, North West Shelf, Pluto LNG and LALNG. Gilboy said the deal shows Woodside is “a dependable energy partner for Japan”, while JERA’s Kosuke Tanaka said it “enhances our supply resilience” and JBIC’s Manabu Kato said it should “help ensure stable LNG supply” at peak demand. Business Wire
Scarborough, Woodside’s growth project off Western Australia, is on track for first gas in the July-to-December 2026 window after its floating production unit arrived from China, Argus reported, putting the project at 91% complete. The development is expected to feed about 5 million tonnes a year of LNG from Pluto Train 2 and up to 3 million tonnes from Pluto Train 1, with Pluto Train 2 set to be commissioned in the second half of 2026, the report said.
Woodside acting CEO Liz Westcott said the focus now shifts to hook-up and commissioning ahead of production, with the first LNG cargo “on track for the second half” of 2026. The floating unit is designed to treat and compress gas for export, industry publication JPT reported. JPT
Crude gave energy stocks a headwind on Thursday, with Brent down $1.67 to $64.85 a barrel in early Asian trade after U.S. President Donald Trump’s comments eased fears of an Iran-related supply shock. U.S. inventory data also weighed, with crude stockpiles rising 3.4 million barrels, Reuters reported.
In Australia, the energy sector slipped as oil unwound a geopolitical risk premium — the extra price traders pay for supply-disruption fears. Beach Energy fell 4.36% and Santos dropped 0.55% in afternoon trade, IG Markets said, after crude touched $59.19 earlier.
Separately, an ASX filing dated Jan. 13 showed Woodside issued 2,340,127 ordinary shares on Dec. 22 and 25,710 on Oct. 27 after employee equity rights vested. The notice said the issuances related to equity rights under Woodside’s equity plans for the quarter ended Dec. 31.
But the shares remain exposed to the next swing in crude and Asian gas prices, and to execution risk on Scarborough and the Pluto expansion — delays or higher costs would test Woodside’s case for steady shareholder returns.
Investors now look to Woodside’s fourth-quarter 2025 report due on Jan. 28 for production and project updates, with the company’s 2025 annual report slated for Feb. 24. Oil price direction and Iran headlines will sit alongside those dates on traders’ screens.
