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Woodside Energy Group Ltd (ASX: WDS), the prominent Australian oil and gas producer, is actively pursuing partnerships for its newly acquired US liquefied natural gas (LNG) project, aiming to revitalise the struggling development under its new ownership. Meg O'Neill, the CEO of Woodside, expressed ambitions to assemble a robust consortium for the project, leveraging the recent acquisition of Tellurian Inc. for US$900 million.
In an interview on Tuesday, O'Neill emphasised the strategic importance of forming a "dream team of LNG" partners to propel the project forward. Woodside intends to sell up to 50% of the venture to potential collaborators, with the objective of reaching a final investment decision by the first quarter of 2025. The acquisition of Tellurian, known for its Gulf Coast Driftwood project, marks a pivotal move for Woodside, which aims to overcome the historical challenges that have hindered Tellurian's progress since its inception in 2016.
Highlighting the rationale behind seeking partnerships, O'Neill pointed to the successful engagement with end-users such as Japanese gas importers who have invested in Woodside's Scarborough gas project in Australia. She also cited the potential involvement of infrastructure giants like Global Infrastructure Partners LP, a key investor in Woodside's Pluto facility expansion, as examples of aligned visions for LNG's role in meeting global energy demands.
According to energy analyst Saul Kavonic from MST Marquee in Sydney, potential partners could include Saudi Aramco, previously engaged in discussions with Tellurian, as well as Abu Dhabi National Oil Co (ADNOC), Japanese buyers, and US infrastructure players. These entities represent significant stakeholders in the global LNG market and could contribute substantial expertise and investment to the Driftwood project.
The move by Woodside to seek partners underscores its strategy to leverage synergies and expertise to drive the project's success amid evolving global energy dynamics. The acquisition of Tellurian and subsequent partnership initiatives position Woodside strategically in the competitive LNG sector, enhancing its portfolio diversification and growth prospects.
As Woodside progresses towards securing partnerships and advancing the Driftwood project, stakeholders will be closely watching developments in the LNG market, anticipating the transformative impact of this strategic initiative on Woodside's operational footprint and market positioning.
To summarise, Woodside's proactive approach to partnering reflects its commitment to capitalizing on growth opportunities in LNG and solidifying its role as a leader in sustainable energy solutions on a global scale. Investors and industry observers await further updates as Woodside navigates towards realizing its vision for the US LNG project under new leadership and strategic alliances.
