Woodside sells 40% stake in Louisiana LNG project to Stonepeak
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The news: Oil giant Woodside Energy has sold a 40% interest in its Louisiana liquified natural gas (LNG) project to Stonepeak. Under the deal, the global investment firm will provide $5.7 billion in capital expenditure for the project.
The numbers: Woodside said Stonepeak's investment represents 75% of the project's capital expenditure in both 2025 and 2026.
The agreement will see Stonepeak hold 40% equity in the project, with the remaining 60% owned by a Woodside holding company.
The context: Woodside said the deal provides "validation of project quality" and will help attract other potential equity partners.
The oil and gas producer also noted that the transaction "significant reduces" its capital expenditure profit and represents a "material step" towards readiness for a final investment decision (FID).
Woodside CEO Meg O'Neill said the company has been pleased with the level of interest from counterparties and customers in Louisiana LNG, and will continue to advance discussions with additional potential partners, targeting an equity sell-down of around 50% in the integrated project.
What they said: "We are very pleased to have Stonepeak join us in Louisiana LNG, given their demonstrated track record investing in US gas and LNG infrastructure across LNG facilities, LNG carriers, and floating storage and regasification units," O'Neill said.
"This transaction further confirms Louisiana LNG's position as a globally attractive investment set to deliver long-term value to our shareholders," she said.
Stonepeak's senior managing director and head of US private equity, James Wyper, said: "With the need to bring significant additional capacity online over the coming years, we have strong conviction in the critical role Louisiana LNG will play in the US LNG export market.
"The project represents a compelling opportunity to invest in a newbuild LNG export facility nearing FID approval with an attractive risk-reward profile and best-in-class partners in both Bechtel and Woodside to construct and operate the asset."
The source: ASX
