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Highlights
- Woodside signs long-term gas supply deal with BP
- Louisiana LNG project to source up to 640 billion cubic feet
- Project poised to elevate Woodside among top global LNG producers
Woodside Energy (ASX:WDS) has taken a major step forward in its ambitious expansion into the U.S. liquefied natural gas (LNG) market by securing a significant gas supply agreement with BP (LON:BP.). This deal marks a key milestone for Woodside's $27 billion Louisiana LNG development, which recently received final investment approval.
Under the newly announced agreement, BP will supply up to 640 billion cubic feet of natural gas to the Louisiana project over a long-term period. This ensures a stable and reliable feedstock supply for the facility, enhancing its commercial viability and reducing exposure to short-term market volatility. The development is also expected to generate positive sentiment across ASX energy stocks, as it underscores the strengthening global demand for LNG and long-term supply security.
The Louisiana development is positioned as a cornerstone of Woodside’s strategic growth, enabling the company to expand its LNG footprint beyond Australian borders. With this project, Woodside is targeting a pivotal role in meeting global energy demand, particularly from countries seeking lower-carbon alternatives such as natural gas amid the ongoing energy transition.
This initiative also represents one of the largest overseas investments by an Australian energy company. The Louisiana LNG project, approved at a cost of $US17 billion, is set to significantly boost Woodside's export capacity and production scale. Once operational, it is projected to place Woodside among the world’s leading LNG producers by the end of the decade.
The agreement with BP provides not only supply assurance but also underscores growing confidence in the long-term relevance of LNG in global energy supply chains. Natural gas, seen by many as a critical bridge fuel, is expected to play an essential role in replacing coal and supporting renewables integration.
The move aligns with broader industry trends where energy companies are forging partnerships and securing upstream resources to support future projects. For Woodside, this deal is part of a wider strategy to diversify its asset base and capture emerging opportunities in North America, a region with abundant gas reserves and growing export infrastructure.
By securing this long-term gas supply, Woodside strengthens the commercial foundation of its U.S. operations while reinforcing its position as a key player in the evolving global LNG landscape.
