News Summary
Woodside Energy Group Ltd. has formed a significant partnership with BP PLC, securing a supply of up to 640 billion cubic feet of natural gas for the Louisiana LNG project, also known as Driftwood LNG. This deal is pivotal for the project, which aims to establish a substantial LNG export capacity. With a total capital expenditure expected to reach $17.5 billion and an anticipated 15,000 jobs during construction, the project represents a historic investment in Louisiana and seeks to promote sustainability while targeting net-zero emissions by 2050.
Louisiana
Woodside Energy Group Ltd. has entered into a significant partnership with BP PLC to secure a supply of up to 640 billion cubic feet of natural gas for its Louisiana LNG project, also known as Driftwood LNG. The natural gas supply is scheduled to commence in 2029, marking a crucial step towards the development of one of the largest liquefied natural gas projects in the United States.
This agreement plays a vital role in the diversified portfolio of feedgas that will support the Louisiana LNG project, utilizing extensive interconnectivity to various producing basins and pipelines. The partnership is particularly notable given Woodside’s ongoing commitment to sustainability, focusing on low methane intensity gas sources that align with environmental objectives under the UN Environment Program’s Oil and Gas Methane Partnership 2.0 initiative.
On April 30, 2025, Woodside finalized its investment decision for the Louisiana LNG project following its acquisition of Tellurian Inc. for $1.2 billion. The total capital expenditure for this ambitious project, which encompasses pipeline infrastructure and management reserves, is anticipated to reach $17.5 billion.
Further financial backing comes from Stonepeak Partners LP, which is set to invest $5.7 billion in exchange for a 40% stake in the project, with significant capital spending expected in the years 2025 and 2026.
Project Capacity and Employment Opportunities
The Louisiana LNG project is projected to have a cumulative export capacity of 1.42 trillion cubic feet/year, which translates to 27.6 million metric tons per annum (MMtpa) of LNG. The initial phase includes three liquefaction trains with a total capacity of 16.5 MMtpa, with plans for two additional trains to bring the overall capacity to 27.6 MMtpa.
During the construction phase, it is estimated that the Louisiana LNG project will support approximately 15,000 jobs, which underscores its importance to the local economy and job market.
Financial Impact and Company Goals
Woodside aims to establish itself as a formidable global player in the LNG sector, targeting a production of around 24 MMtpa from its global LNG portfolio by the 2030s. The project is expected to generate about $2 billion in annual net operating cash by the 2030s and contribute over $8 billion from its global operations during the same timeframe.
Despite the project’s scale, Woodside has confirmed that its greenhouse gas emissions reduction targets will remain unchanged. The company has set a goal to reduce net equity Scope 1 and 2 greenhouse gas emissions by 30% by 2030 and is aspiring for net-zero emissions by 2050 or earlier.
Historic Investment and Future Outlook
This project represents the largest single foreign direct investment in Louisiana’s history and is notable for being the first greenfield US LNG project to achieve a final investment decision since July 2023. Woodside’s leadership has labeled the Louisiana LNG project a transformative venture that promises substantial cash generation and long-term value for shareholders.
In the wake of the announcement, a teleconference overview of the Louisiana LNG development was organized, led by Woodside’s CEO, reflecting the company’s ongoing commitment to transparency and stakeholder engagement throughout this monumental undertaking.
Deeper Dive: News & Info About This Topic
- Business Wire: Woodside Approves Louisiana LNG Development
- Wikipedia: Liquefied natural gas
- Reuters: Woodside Energy Signs LNG Supply Deal with BP
- Google Search: Woodside Energy LNG project
- Wall Street Journal: Woodside Energy Approves Louisiana LNG Development
- Google Scholar: Woodside Energy LNG
- Oil Price: SP Downgrades Woodside Outlook to Negative
- Encyclopedia Britannica: Natural gas
- The Advocate: Woodside Energy’s Louisiana LNG Project
- Google News: Woodside Energy
