Australia’s Woodside Energy WDS.AX said on Monday it signed two binding agreements with U.S.-based Commonwealth LNG to buy liquefied natural gas (LNG) from a liquefaction plant in Louisiana.

The deal follows both the companies beginning negotiations in January and comes at a time when demand for energy in Europe is heightened due to the conflict in Ukraine.

“The agreements secure for Woodside low-cost LNG volumes in the Atlantic Basin in a period of expected strong demand as Europe seeks alternatives to Russian pipeline gas,” Chief Executive Officer Meg O’Neill said in a statement.

Under the agreement, Woodside will purchase up to 2.5 million tonnes per annum (Mtpa) of LNG over 20 years from Commonwealth LNG’s proposed export facility in Cameron Parish, Louisiana, with the first deliveries expected to commence in mid-2026.

Energy prices have soared ever since Russia invaded Ukraine, compounding supply chain snarls, and has left customers in the global markets scrambling for alternate supplies.
Source: Reuters (Reporting by Savyata Mishra in Bengaluru; editing by Uttaresh.V)