Woodside Energy Sells 40% Stake in Louisiana LNG Project

News Summary

Woodside Energy Group Ltd has finalized a deal with Stonepeak to sell a 40% stake in the Louisiana LNG Infrastructure project for $5.7 billion. This strategic move aims to enhance project appeal and reduce capital spending, paving the way for a final investment decision. Stonepeak’s substantial capital investment strengthens the project’s economic viability while construction continues in the Gulf Coast region. With major financial advisors involved, the energy sector eagerly anticipates the project’s potential impact on LNG exports in the U.S.

Exciting Developments in Louisiana’s LNG Infrastructure!

New Orleans is buzzing with big news in the energy sector! Woodside Energy Group Ltd has just sealed the deal with Stonepeak, a leading global investment firm, to sell a substantial 40% stake in the Louisiana LNG Infrastructure LLC project for an eye-popping $5.7 billion. Wow!

What’s the Big Idea?

This agreement is more than just a financial transaction; it aims to validate the quality of the project and boost its appeal to potential partners looking to dive into the lucrative LNG market. Essentially, this move promises to make the whole project more attractive while reducing Woodside’s capital spending “headaches.” This deal is certainly paving the way toward a final investment decision (FID) on the project, marking a significant milestone in the journey of Louisiana’s LNG operations.

A Closer Look at Stonepeak’s Role

Stonepeak isn’t just a silent partner in this venture; they’re planning to provide a hefty 75% of the project’s capital spending in both 2025 and 2026. By contributing such a large sum, Stonepeak is not only enhancing the project’s economic structure but also giving Woodside a friendly boost in cash flow as they prepare for revenues from their Scarborough Energy Project in Australia.

Construction on the Horizon!

The Louisiana LNG project, nestled in the Gulf Coast LNG corridor, is positioned perfectly with access to ongoing natural gas resources. With a total permitted capacity of 27.6 million tonnes per annum, this venture is fast approaching final investment approval, with construction already underway and the engineering design nicely wrapped up.

Who’s Who in the Deal?

For those curious about the power players involved, Stonepeak has enlisted a selection of top financial advisors like Mizuho Bank and Greenhill & Co.. Meanwhile, Woodside has also engaged a top-tier team including RBC Capital Markets and Evercore. This collaborative effort showcases a well-structured campaign aimed at realizing the potential of the LNG sector.

What Lies Ahead?

The deal is primed for closure in the second quarter of 2025, pending certain conditions like regulatory approvals and the all-important final investment decision. This timeline adds a rush of excitement as both companies gear up for what could be a game changer in the world of LNG exports in the U.S.

Looking Back – A Quick Recap

Just last year, Woodside made headlines by acquiring Louisiana LNG in a significant $900 million deal with Tellurian. Now, with Stonepeak stepping in as a partner, the future looks bright! Woodside is aiming for a 50% equity sell-down in this integrated project, and adding Stonepeak to the mix could unlock even more value and fuel conversations with future equity partners.

In Conclusion

This partnership blends expertise and investment power, promising not just to bolster Woodside’s financial profile but also ramp up the whole Louisiana LNG project. As it gears up for FID, the energy community is watching closely. The buzz around Louisiana’s LNG infrastructure just got even more thrilling!

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