Woodside approves development of $27b US LNG project
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The news: Oil and gas giant Woodside Energy has made a final investment decision to develop the 16.5 million tonnes per annum (MTPA) Louisiana LNG project in the US.
The numbers: The development’s initial three-trains will have a capacity of 16.5 MTPA, with an expansion capacity for two additional LNG trains and a total capacity of 27.6 MTPA. Woodside is targeting the first LNG from the project in 2029.
The forecast total capital expenditure for the LNG project, pipeline and management reserve is USD17.5 billion ($27.2 billion). Woodside’s share of this will be USD11.8 billion, while Stonepeak, as an investor in Louisiana LNG Infrastructure LLC, will provide USD5.7 billion towards the expected capital expenditure for the LNG project on an accelerated basis.
The context: Woodside said the development of Louisiana LNG will position the company as a global LNG powerhouse, enabling it to deliver approximately 24 MTPA from its global LNG portfolio in the 2030s, and operating over 5% of global LNG supply.
“This decision is another demonstration of Woodside’s disciplined investment approach, with the project delivering returns that exceed our capital allocation framework,” CEO Meg O’Neill said. “Adding Louisiana LNG to our established Australian LNG business provides Woodside with a balanced and resilient portfolio, combining long-life, flexible LNG assets with high-return oil assets.”
Woodside acquired the project from NYSE-listed energy firm Tellurian in October 2024. Earlier this month, it sold a 40% stake in the project to Stonepeak and also signed a long term agreement with Germany’s Uniper to supply LNG from the Louisiana project.
The source: ASX
