Woodside Energy to Sell Stake in Louisiana LNG Project

News Summary

Woodside Energy, Australia’s leading natural gas producer, plans to sell an additional 20% to 30% stake in its Louisiana LNG project, aiming for 50% ownership.

New Orleans – Woodside Energy, Australia’s leading natural gas producer, has announced plans to sell an additional 20% to 30% stake in its Louisiana LNG project. The company made this announcement during the Macquarie Australia Conference, in an effort to reach its target of 50% ownership in the project, following the receipt of final approval for the project worth $17.5 billion.

The strategic move to reduce stake aligns with analysts’ expectations regarding risk management associated with large-scale energy projects. Woodside’s Chief Operating Officer highlighted an uptick in interest from potential partners subsequent to the project’s approval. This interest is crucial as the Louisiana LNG project anticipates commencing gas deliveries by 2029 and is projected to generate $2 billion in annual net operating cash flow during the 2030s.

The Louisiana LNG facility is being built to feature three liquefaction trains, collectively capable of processing 16.5 million tonnes per annum (Mtpa) of LNG. Following future expansion, the full operational potential of the facility could increase to 27.6 Mtpa. The project leverages the abundant supply of low-cost natural gas from U.S. reserves, taking advantage of established pipeline networks for distribution.

Stonepeak, an investor in Louisiana LNG Infrastructure, is set to contribute $5.7 billion towards the capital cost of the project, while Woodside’s own share of capital expenditure is projected at $11.8 billion. During the construction phase, the Louisiana LNG project is expected to support approximately 15,000 jobs within the United States.

This substantial investment marks the largest single foreign direct investment in Louisiana and represents the first greenfield U.S. LNG project to reach a final investment decision since July 2023. Woodside’s strategy to divest part of its stake reflects a disciplined investment approach aligned with its capital allocation targets and risk management frameworks.

The company believes the market presents substantial opportunities across both the Atlantic and Pacific Basins, particularly targeting growing demands for gas in Europe and Asia. To further lower its capital exposure and accelerate realization of the project’s value, Woodside is engaging in ongoing discussions with potential strategic partners.

The Louisiana LNG project is positioned as a vital component of the global energy landscape, aiming to deliver significant economic and environmental benefits. As the project progresses, Woodside expects to maintain a strong presence in the U.S. energy market, leveraging local resources and infrastructure to achieve its long-term goals.

In summary, Woodside Energy’s initiative to sell a significant stake in the Louisiana LNG project underscores its strategy to mitigate risks and solidify its investment in the rapidly evolving energy sector. As the project gears up for its operational phase, the anticipated economic impacts and job creation signal a promising future for both Woodside and the broader Louisiana economy.

Deeper Dive: News & Info About This Topic

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• Google Search: Woodside Energy Louisiana LNG
• Reuters: Australia’s Woodside Energy Signs LNG Supply Deal with BP for Louisiana Project
• Encyclopedia Britannica: Natural Gas
• Workboat: Woodside Energy Approves $17.5 Billion Louisiana LNG Project
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