Woodside Energy shares climb on $378m Williams deal
Make us a preferred source
Make us a preferred source on Google
More news: Woodside Energy shares rallied in morning trade after the energy giant struck a strategy partnership with NYSE-listed Williams, that will see the company receive $378 million in exchange for stakes in its Louisiana LNG and Driftwood Pipeline projects.
Woodside shares were up 3.5% to $23.97 at 11am AEDT.
Woodside Energy to coup $378m as Williams joins Louisiana LNG
The news: Oil and gas giant Woodside Energy has agreed to sell a 10% stake in its Louisiana LNG project, as well as an 80% interest and operatorship of its Driftwood Pipeline, to US energy company Williams for a total payment of $378 million.
The numbers: Williams will contribute its share of the capital expenditure for the LNG facility and pipeline, amounting to $1.9 billion. The deal reduces Woodside's total capital expenditure for the Louisiana LNG project to $9.9 billion, down from $11.8 billion at the final investment decision.
As part of the investment in Louisiana LNG, Williams will take on LNG offtake obligations for 10% of produced volumes.
The context: Earlier this year, Woodside sold a 40% interest in Louisiana LNG to US investment firm Stonepeak. The remaining 60% is owned by a Woodside holding company.
Williams currently operates more than 33,000 miles of pipeline across 24 states in the US and will construct and operate the Line 200 pipeline to the Louisiana LNG Terminal.
What they said: "We are excited to have Williams join us as a strategic partner in Louisiana LNG given its leadership in US natural gas infrastructure and ability to a dd value and deliver operational benefits to enhance the project," said Woodside CEO Meg O'Neill.
"This is WIlliams' first investment in LNG and its participation in Louisiana LNG is a testament to the quality of the project."
The source: ASX
