News Summary

Woodside Energy Group has committed $17.5 billion to build the Driftwood LNG Terminal in Calcasieu Parish, Louisiana. This marks the largest foreign investment in the state’s history. The facility aims to produce 16.5 million metric tons of LNG annually and is projected to create around 15,000 construction jobs and 4,000 permanent jobs. Construction commenced in 2022, with the first LNG expected by 2029. The project underscores Louisiana’s growing significance in the global energy market.

Calcasieu Parish

Woodside Energy Group, an Australian fossil fuel company, has confirmed a significant commitment to build a $17.5 billion liquefied natural gas (LNG) export terminal in Louisiana, marking the largest foreign investment in the state’s history. This investment represents a crucial step in the development of the Driftwood LNG Terminal, now under the ownership of Woodside following its acquisition of Tellurian Inc. for $1.2 billion in 2024.

Governor Jeff Landry highlighted that this project stands as the largest single foreign investment and greenfield project ever realized in Louisiana. The facility, situated in Calcasieu Parish, is expected to generate approximately 16.5 million metric tons of LNG annually for the global market once operational. Construction of the Driftwood site commenced in 2022, with forecasts indicating that the first batch of LNG will be produced by 2029.

In a further show of commitment to the project, Woodside has secured a long-term agreement with BP to supply natural gas to the facility. This agreement outlines a purchase of up to 640 billion cubic feet of natural gas, ensuring a stable supply for the LNG export terminal.

Economic Impact

The development of the Driftwood LNG facility is projected to yield significant economic benefits for Louisiana. It is estimated that the project will support around 15,000 construction jobs during its building phase, alongside the creation of approximately 4,000 permanent jobs once the terminal is fully operational. This influx of employment opportunities is anticipated to have a favorable impact on the local economy, enhancing job prospects for residents in the region.

Site Details

The Driftwood LNG site spans 1,200 acres, located south of Sulphur along the west bank of the Calcasieu River. This strategic position is advantageous, given Louisiana’s existing infrastructure, which includes four active LNG terminals—the highest number in any state in the U.S.—and over 30,000 miles of natural gas pipelines. This extensive network supports the efficient transportation and export of natural gas, making the state a key player in the global energy market.

Background and Project Timeline

Woodside’s final investment decision follows a decade-long journey for the Driftwood LNG project, which was initially proposed ten years ago. The company aims to position itself as a leader in the LNG market with this ambitious facility. CEO Meg O’Neill described the project as a compelling investment, anticipating significant cash generation and long-term shareholder value. The establishment of this LNG terminal at such a large scale is a vital initiative for both Woodside and the state of Louisiana, appealing to environmental and economic interests.

With increasing global demand for LNG and its role in providing cleaner energy, Louisiana is set to continue evolving as a central hub for liquefied natural gas exportation. As the Driftwood LNG project progresses, it underscores the growing significance of the energy sector in the state’s economy, positioning Louisiana as an influential player in the future of global energy resources.

Deeper Dive: News & Info About This Topic

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