Australian Energy Company Woodside Greenlights $17.5 Billion Louisiana LNG Project
Australian energy giant Woodside is making waves in the industry with its latest venture – a $17.5 billion liquefied natural gas (LNG) production and export terminal in Louisiana. This project represents the largest direct foreign investment in the state’s history and underscores Woodside’s commitment to diversification and international expansion.
The project, acquired from Tellurian in 2024, recently received the final investment approval from Woodside, signaling a significant milestone in the company’s strategic growth plans. To support the massive undertaking, Woodside has partnered with Stonepeak, an alternative investment fund, which will contribute $5.7 billion towards the capital expenditure.
Woodside’s CEO, Meg O’Neill, expressed enthusiasm for the project, touting its potential to position the company as a global LNG powerhouse and deliver substantial returns for shareholders. With access to abundant low-cost gas resources in the U.S. and a projected lifespan of over 40 years, the Louisiana LNG terminal is poised for success.
The terminal will feature a three-train, 16.5 million tonne annual capacity, with the first LNG shipments expected in 2029. Plans for expansion include two additional LNG trains, bringing the total capacity to 27.6 Mtpa. By the 2030s, Woodside aims to deliver 24 Mtpa from its global LNG portfolio.
Located near Lake Charles, Louisiana, the project has been in the works since March 2022, with construction underway under the previous ownership. Despite initial challenges, Woodside’s acquisition of the fully permitted project has expedited progress and mitigated regulatory uncertainties.
While the project has faced criticism for its potential impact on greenhouse gas emissions, Woodside remains optimistic about the growing demand for LNG in key markets like Asia and Europe. As global energy trends shift towards decarbonization, Woodside sees the Louisiana LNG terminal as a strategic asset for meeting evolving energy needs.
Amidst industry concerns over LNG oversupply and evolving trade regulations, Woodside’s bold move signals its confidence in the long-term viability of LNG exports. With a balanced and resilient portfolio spanning the Pacific and Atlantic basins, Woodside is poised to solidify its position as a leading player in the global LNG market.
As the Louisiana LNG project moves full steam ahead, Woodside’s bold vision for the future of energy production and exportation is set to make a lasting impact on the industry landscape.