Woodside sees LNG demand extending into 2040s as gas underpins energy transition

By Cepi Setiadi

Australian energy company Woodside Energy expects demand for liquefied natural gas (LNG) to remain robust well into the 2040s, supported by long-term customer commitments and the role of natural gas in balancing energy security and decarbonisation.

Gareth Wright, Head of Climate Strategy and Engagement at Woodside Energy, said the company signed six new long-term LNG contracts in 2025 alone and has secured contracts totaling more than 75 million tonnes of LNG over the past two years with customers across Asia and Europe.

"These contracts extend well into the 2030s and, in some cases, into the 2040s," Wright said during a presentation at the recent Global Sustainable Development Congress 2026 at ICE BSD in Tangerang, Banten.

According to Wright, ongoing discussions with customers consistently show that LNG remains a critical component of both energy security and decarbonisation strategies.

"The message we get is both clear and consistent. LNG plays a critical role in supporting both energy security and decarbonisation in their nations," he said.

Wright argued that Asia-Pacific is currently experiencing an "energy addition" rather than an outright energy transition, with demand for coal, natural gas and renewables all increasing simultaneously due to population growth and economic development.

Although coal remains abundant and low-cost, it is also the most emissions-intensive fossil fuel and a major contributor to greenhouse gas emissions. Around half of Asia's emissions come from the power sector, and approximately 90% of those emissions are generated by coal-fired power plants.

By comparison, natural gas produces around half the lifecycle emissions of coal when used for power generation, making it a lower-emissions complement to renewable energy, he said.

"This creates a significant opportunity for gas and renewables to work together to support both energy security and decarbonisation across the region," Wright said.

Drawing on Australia's experience, Wright said power systems dominated by renewables but backed by flexible gas-fired generation have significantly lower emissions intensity than coal-dependent systems.

"The progression from Victoria to South Australia in their power generation illustrates what the energy transition looks like in practice for the power sector, and it's a pathway that is highly relevant across the Asia-Pacific region," he said.

Beyond the role of gas, Wright said the energy transition requires a combination of supportive policies, technological innovation and strong operational performance. He noted that countries continue to pursue different decarbonisation pathways, reflecting varying economic conditions, energy mixes and priorities regarding energy security and affordability.

For global energy companies such as Woodside, this means operating amid divergent policy frameworks and evolving regulatory requirements while maintaining resilient business strategies.

"We're trying to provide the energy the world needs today, as well as what it needs tomorrow," he said.

Editing by Reiner Simanjuntak