JERA and Woodside Energy Group (WDS) Signs a Deal
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 (NYSE:WDS) 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 (NYSE:WDS) 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 (NYSE:WDS) 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 (NYSE:WDS) competitively amidst the growing market for lower-carbon ammonia.
While we acknowledge the potential of WDS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WDS and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now
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