News Summary
Woodside, a key player in the liquefied natural gas sector, is actively seeking to sell a 20-30% stake in its Louisiana LNG holding company after a $900 million acquisition from Tellurian. The company remains confident in the long-term viability of the Louisiana LNG project, having recently approved its construction with an estimated capital expenditure of $17.5 billion. Woodside’s strategic partnerships and flexible marketing approach position it well in the evolving global LNG market, targeting first LNG production by 2029.
Louisiana – Woodside is making significant moves in the liquefied natural gas (LNG) sector by seeking to sell a 20-30% stake in its Louisiana LNG holding company. This follows the company’s acquisition of the stake through a $900 million takeover of Tellurian last year. Currently, Woodside’s Chief Executive Meg O’Neill has indicated that the company might maintain up to 80% ownership of the holding company even after this sale.
The ongoing negotiations for potential partnerships include major players such as Saudi Arabian Oil Co. (Aramco). Although the sale of the stake is still in the works, Woodside approved the construction of the Louisiana LNG project in April, signaling confidence in the initiative’s long-term viability.
The total estimated capital expenditure for the Louisiana LNG project, along with the pipeline and management reserve, stands at $17.5 billion. In terms of capacity, the project aims to produce 16.5 million tonnes per annum (mtpa) for the first three trains, with full permits already in place for an expansion that could add two additional LNG trains, increasing the total capacity to 27.6 mtpa.
Construction Progress and Timeline
As of now, Woodside is targeting the first LNG production by 2029. The construction of Train 1 is currently 22% complete, with expectations for the first structural steel to arrive on site by the end of this year. Bechtel has been contracted for engineering, procurement, and construction (EPC) services for this project, using Chart’s liquefaction technology alongside Baker Hughes gas turbines.
Stake Sales and Strategic Partnerships
In June, Woodside took a significant step by selling a 40% stake in its Louisiana LNG project to US private equity firm Stonepeak. This sale signals Woodside’s active approach to managing its investment portfolio in the rapidly evolving LNG market. In addition, Woodside has signed a non-binding collaboration agreement with Aramco to explore global opportunities, which may include potential equity interests and LNG offtake arrangements.
Marketing Strategy and Future Outlook
Woodside is keen to maintain flexibility in its LNG marketing strategy. The company aims to keep around eight million tonnes of its LNG portfolio out of the total contracted capacity of 16.5 million tonnes. This approach enables Woodside to respond effectively to market demands and optimize its sales in the global LNG market. To further bolster its strategy, Woodside has already secured agreements with companies like China Resources and Uniper for LNG offtakes.
Conclusion
As Woodside continues to progress with its Louisiana LNG project amid the potential stake sale and market negotiations, the developments in the coming months will be closely watched by industry stakeholders. The company’s commitment to maintaining a significant share in this pivotal project, coupled with strategic partnerships and a flexible marketing approach, positions Woodside as a formidable player in the global LNG landscape.
Deeper Dive: News & Info About This Topic
- LNG Prime: Woodside Working to Charter Vessels
- Wall Street Journal: Woodside Wants to Sell 20-30% of Louisiana LNG
- Investing.com: Woodside Energy May Keep Up to 80% of Louisiana LNG
- Energy Intelligence: Woodside’s Strategic Moves in LNG
- Encyclopedia Britannica: Liquefied Natural Gas
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
