News Summary
Woodside has reached a long-term agreement with BP to supply natural gas for the Louisiana LNG project, marking a significant step in the project’s infrastructure plans. The agreement allows for up to 640 billion cubic feet of gas and emphasizes sustainability as part of the UN’s OGMP 2.0 initiative. With a projected investment of $17.5 billion and an anticipated operational capacity of 16.5 million metric tons of LNG per year, the project is set to create thousands of jobs and enhance energy supply both locally and nationally.
Cameron Parish, Louisiana – Woodside has finalized a long-term agreement with BP to supply natural gas for the highly anticipated Louisiana LNG project. This agreement marks the first phase of a diversified portfolio aimed at supporting the gas supply needs of the project.
The Louisiana LNG project’s infrastructure is designed to ensure extensive interconnectivity with multiple producing basins and existing pipelines, optimizing the delivery of natural gas. The CEO of Woodside, Meg O’Neill, emphasized that this agreement is a significant milestone in the advancement of the Louisiana LNG project, which is poised to be a pivotal investment guaranteed to yield substantial cash flow and create long-term shareholder value.
The gas supply agreement is a crucial step forward for the Louisiana LNG project, enabling access to low methane intensity molecules, a goal bolstered by BP’s expertise in managing MiQ certificates. This initiative supports Woodside’s commitment to sustainability as part of the UN Environment Programme’s OGMP 2.0 initiative.
Under the terms of the agreement, Louisiana LNG Gas Management LLC (GasCo), a subsidiary of Louisiana LNG LLC, will purchase up to 640 billion cubic feet (Bcf) of gas from BP. The delivery of gas is anticipated to begin at Line 200 in the year 2029, while GasCo will execute a strategic plan for sourcing gas to support the Louisiana LNG project.
Situated in Cameron Parish, Louisiana, the Louisiana LNG project had its final investment decision of $17.5 billion announced by Woodside on April 28, 2025. Once operational in 2029, the project is expected to have a production capacity of up to 16.5 million metric tons of liquefied natural gas per year, significantly contributing to local and national energy supplies.
As the construction phase progresses, thousands of job opportunities are expected to be created, with further direct employment opportunities arising once the facility becomes operational. The acquisition of the project, initially named Driftwood LNG, was part of Woodside’s strategic move to expand its presence in the LNG sector. In 2024, Woodside finalized a $1.2 billion acquisition of Tellurian Inc., taking over the project.
Earlier in April 2025, Woodside also divested a 40% stake in the Louisiana LNG facility to Stonepeak for $5.7 billion, further solidifying its financial backing and capacity to deliver on this significant energy initiative.
Details regarding the financial terms of the current gas supply agreement have not been publicly disclosed. However, the collaboration with BP, a company with a history of successful partnerships with Woodside, is expected to enhance operational efficiency and environmental sustainability for the Louisiana LNG project, aligning with broader industry trends toward cleaner energy sources.
The development of the Louisiana LNG project and the partnership with BP underscores Woodside’s strategic direction in meeting energy demands while embracing environmental responsibilities.
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