Woodside LNG Trading Shielded from Iran War

Woodside Energy Group Ltd said Wednesday its liquefied natural gas (LNG) shipments have not been impacted by the conflict in the Middle East and that it has largely avoided increased costs from higher carrier rates.

LNG sales rose to 22 million barrels of oil equivalent (MMboe) in the first quarter (Q1), compared to 20.47 MMboe in the prior three-month period and 18.78 MMboe in Q1 2025.

"Woodside has a strategy of securing term shipping for annual average delivery commitments and therefore has limited exposure to volatile spot LNG carrier rates", the Australian LNG-focused producer said in its quarterly report.

"Woodside does not currently have any controlled shipping that traverses Iranian waters or the Straits of Hormuz. Woodside trade routes are not subject to increased security risk".

Woodside reported continued "strong" demand for spot cargoes at market prices. However, its realized LNG prices were "broadly flat" compared to Q4 2025 due to price lags, the company said.

"Approximately 51 percent of LNG sold was linked to gas hub indices in the quarter", Woodside said.

"Interruptions have increased the demand for crude products resulting in higher spot market prices".

Chief executive Liz Westcott said, "We have seen modest increases to our portfolio average realized pricing in the quarter, driven by elevated spot prices. Further benefits of currently higher spot prices will be realized in subsequent quarters for LNG due to lagged contract pricing".

Operating revenue across activities increased 7 percent quarter-on-quarter but fell 2 percent year-on-year to $3.26 billion.

The sequential increase was due to higher total gas sales and higher realized domestic gas prices, which offset lower sales volumes for liquids.

The decrease by prior-year comparison reflected year-on-year declines in price realizations for LNG, natural gas liquids, JCC-linked oil prices and JKM- and TTF-linked gas prices.

Total production fell 8 percent both quarter-on-quarter and year-on-year to 45.2 MMboe. Woodside's output in Western Australia was impacted by Severe Tropical Cyclone Narelle late in the quarter, but impacted assets have now been restored, it said.

Gas production fell 8 percent quarter-on-quarter and 14 percent year-on-year to 1.58 billion cubic feet per day (Bcfpd). Liquids fell 5 percent quarter-on-quarter and 1 percent year-on-year to 221,000 bpd.

Westcott, whom Woodside confirmed as chief executive March 18 after she replaced Meg O'Neill on an interim basis, said the company was launching "a structured review of our business to streamline decision making, reduce complexity and improve accountability".

"We expect this will deliver benefits through improved organizational effectiveness and capital management without compromising safety, execution or operational reliability", Westcott added.

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