News Summary
Woodside Energy has finalized a $17.5 billion investment to build a liquefied natural gas (LNG) facility in Calcasieu Parish, Louisiana. This project, marking Louisiana’s largest foreign investment, will produce 16.5 million tons of LNG annually, with capacity expansion to 27.6 million tons. The facility promises to create 500-1,000 permanent jobs and enhance local employment, despite facing environmental concerns and logistical challenges. With global LNG demand set to surge, the facility positions Louisiana as a vital player in the energy market.
Calcasieu Parish, Louisiana – Woodside Energy has finalized a significant $17.5 billion investment decision to construct a liquefied natural gas (LNG) production and export facility in Calcasieu Parish. This undertaking marks the largest foreign investment in the history of Louisiana, as confirmed by state officials.
Spanning a 1,200-acre site on the west bank of the Calcasieu River, just south of Lake Charles, the facility has been under construction for three years. Once completed, it is projected to produce 16.5 million tons of LNG annually, with expansion capacity enabling production to reach 27.6 million tons per year.
The project promises to significantly boost local employment, generating between 500 to 1,000 permanent jobs alongside approximately 8,000 construction jobs. Louisiana Governor Jeff Landry emphasized the challenges that had to be navigated to bring this project to fruition during the announcement of the investment.
Investment History
Woodside Energy, an Australian-based company, previously acquired the Driftwood LNG project from Tellurian for $900 million last year. Notably, Woodside recently sold a 40% stake in the facility to Stonespeak for $5.7 billion. This sale significantly reduces Woodside’s financial obligations concerning the project, as Stonespeak’s investment will cover 75% of the capital expenditures necessary to complete the plant by 2026.
Market Demand
Global demand for LNG has surged by 60% over the past decade and is expected to increase by an additional 50% in the next ten years. Low natural gas prices in Louisiana and Texas are driving the demand for Gulf Coast LNG, making it an attractive option for markets in Europe and Asia.
As approximately 500 workers are currently employed at the construction site, initial work has made substantial progress involving pilings and concrete pouring. The Louisiana LNG facility is positioned well to supply LNG to international markets while benefiting from strategic advantages in a changing geopolitical landscape, particularly in light of the ongoing Russia-Ukraine conflict.
Regional LNG Context
The facility will be developed on property owned by the Port of Lake Charles, located in a state with a rich history of LNG developments. Currently, there are four existing LNG terminals, and Venture Global is also in the process of finalizing decisions for another facility in Cameron Parish. The state has been proactive in supporting LNG projects, as evidenced by a major tax concession granted in 2018, which was the largest industrial tax break in Louisiana’s history.
Challenges and Concerns
While the project is anticipated to generate significant economic growth and jobs, it has not been without controversy. Concerns have been raised by critics, including environmental advocates such as the Louisiana Bucket Brigade, regarding potential ecological impacts such as erosion, dredging effects, and air pollution associated with the facility’s operations. The project has faced numerous delays due to the COVID-19 pandemic, financing issues, and challenges with equipment delivery.
Future Plans
The first LNG delivery from the facility is expected to take place in 2029. As construction progresses, state officials and stakeholders remain focused on ensuring the project succeeds while addressing environmental and economic considerations that could impact the community.
Deeper Dive: News & Info About This Topic
- The Advocate: Woodside Energy $17.5B LNG Project
- Wikipedia: Liquefied natural gas
- KPLC: $17B LNG Facility Green Lit
- Google Search: Woodside Energy LNG
- KLFY: Woodside Approves $17.5B LNG Project
- Encyclopedia Britannica: Natural Gas
- gCaptain: Venture Global’s Calcasieu Pass Operations
- Google News: Calcasieu LNG Project
- Chemanalyst: Venture Global’s LNG Project Commences
- Google Scholar: LNG Projects in Louisiana
