PERTH, June 25, 2026, 01:04 (AWST)
- Woodside is set to deliver 31.1 petajoules of Western Australian gas to Alcoa between 2027 and 2030, according to the company.
- Stock finished Wednesday down 1.43% at A$28.24.
- Brent crude dropped under $74 a barrel as tanker traffic increased in the Strait of Hormuz.
Woodside Energy Group said it will supply 31.1 petajoules of gas to Alcoa of Australia from its Western Australian assets under a four-year deal. Woodside didn’t disclose the value of the contract. “This gas will be supplied to Alcoa’s Western Australian refineries, which provide thousands of local jobs,” Chief Commercial Officer Mark Abbotsford said. Woodside put its share of Western Australian domestic gas at about 21% for 2025.
Alcoa Energy Director Australia Nick Eaton said the deal would help keep supply steady at the refineries. “We continue to progress our broader energy strategy,” Eaton said. Eaton said Alcoa is looking at gas supply past 2030 and plans to bring renewables into its mix. Alcoa has about 4,000 staff in Western Australia. Alcoa
Brent crude dropped more than $3 to trade at $73.65 a barrel by 1445 GMT on Wednesday, heading for its lowest since February 27. The move came as three tankers, loaded with 5 million barrels, were able to leave the Strait of Hormuz after being stranded. “The market is pricing in the broader scenario of Iranian oil re-entering the global market,” said Tim Waterer, chief market analyst at KCM Trade. Reuters
Alcoa has another, bigger deal with Chevron Australia, covering 130 petajoules across a decade starting 2028. Chevron said that supply will use gas from its Western Australia projects.
Woodside said June 15 it isn’t in talks about a deal with Exxon Mobil and isn’t aware of any such proposal, following recent media speculation.
Woodside has money in big liquefied natural gas projects. LNG is gas turned into liquid for shipping. Scarborough hit 96% complete by March 31 and is still set to deliver its first LNG cargo in the fourth quarter of 2026. Over in Louisiana, that project was 24% done, aiming for first output in 2029.
The Alcoa deal does not start until 2027 and Woodside hasn’t said what price it will get. S&P Global Ratings moved its BBB+ investment-grade rating outlook for Woodside to negative after the company signed off on the US$17.5 billion Louisiana project. S&P pointed to little room for Woodside to handle lower oil prices or higher costs.
Woodside said it will pay US$225 million for PetroChina’s 10.67% stake in Browse, with another US$175 million possible if the project is formally approved. The deal uses Woodside’s pre-emptive right to match the offer. If cleared, Woodside’s holding in Browse would rise to 41.27%. “Shareholders are not keen on Woodside developing Browse,” MST Marquee analyst Saul Kavonic said. Reuters
