Woodside Energy Group Ltd (NYSE:WDS) is one of the 7 Best ASX Stocks to Buy Now. On June 20, Reuters highlighted that Japan’s biggest power generator, JERA, and Australia’s Woodside Energy Group Ltd have signed a deal in which Woodside will supply JERA with liquefied natural gas only during the winter months. As per the deal, Woodside Energy Group Ltd will supply ~200,000 metric tons of LNG annually during the December to February period, beginning in FY 2027. The deal is for 5 years.
A worker in safety gear with a drill rig in a sprawling oilfield.
As per Yuya Hasegawa, a director at the Ministry of Economy, Trade and Industry, this agreement is unusual as it covers only 3 months of the year rather than the whole year, which a regular term contract would have covered. In Q1 2025, Woodside Energy Group Ltd maintained its strong operational performance throughout the portfolio of high-quality assets, and Sangomar further boosted quarterly revenue via exceptional production of 78 thousand barrels per day at ~98% reliability.
At the Beaumont New Ammonia Project, pre-commissioning activities are projected to start in Q2 2025, and the startup is targeted for H2 of the year. Therefore, the value-creating opportunity is expected to deliver returns above its capital allocation framework and will place Woodside Energy Group Ltd competitively amidst the growing market for lower-carbon ammonia.
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