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Highlights
- Woodside Energy greenlights major US LNG project.
- Louisiana LNG project targets first production in 2029.
- Global LNG capacity to exceed 24 MTPA for Woodside by 2030s.
Woodside Energy (ASX:WDS) has officially approved the development of its ambitious Louisiana LNG project in the United States, marking a major step in strengthening its global liquefied natural gas (LNG) footprint. The project’s final investment decision highlights Woodside's strategic expansion into the high-demand energy sector beyond its home base in Australia.
The Louisiana LNG project will initially feature three production trains with a combined capacity of 16.5 million tonnes per annum (MTPA), and an option to expand with two additional trains, bringing the potential total output to an impressive 27.6 MTPA. Woodside is targeting the first LNG shipment from the facility by 2029, aiming to meet growing global energy demands.
The total expected capital expenditure for the LNG project, pipeline, and management reserve stands at US$17.5 billion (A$27.2 billion). Woodside’s share of the investment is projected at US$11.8 billion. Stonepeak, a leading infrastructure investor, is contributing US$5.7 billion through its involvement with Louisiana LNG Infrastructure LLC, accelerating the financial backing necessary for the project.
Woodside’s leadership believes this expansion cements its place as a significant player in the global LNG arena. With the addition of the Louisiana facility, the company aims to deliver approximately 24 MTPA from its global portfolio during the 2030s, accounting for more than 5% of global LNG supply. This positions Woodside strategically as a resilient and diversified energy powerhouse capable of navigating market shifts.
CEO Meg O’Neill highlighted that the decision to proceed reflects Woodside’s disciplined investment philosophy, emphasizing robust returns that align with its capital allocation strategy. The move also enhances portfolio balance, combining the reliability of long-life LNG assets with the profitability of high-return oil ventures.
The Louisiana project traces back to Woodside’s acquisition from Tellurian (NASDAQ:TELL) in October 2024. Recently, the company secured a 40% project partnership with Stonepeak and locked in a long-term LNG supply agreement with German energy major Uniper, ensuring a strong commercial framework for the new development.
As global demand for clean and flexible energy sources continues to rise, Woodside’s strategic moves in the US market signify a bold stride towards securing a greater share of the future LNG landscape.
