Woodside Energy in Talks to Sell Stakes in Louisiana LNG Plant

Woodside Energy, a major Australian oil and gas producer, is currently in discussions with several potential buyers for stakes in its Louisiana liquefied natural gas (LNG) plant. According to multiple sources familiar with the matter, the companies involved in the talks include Tokyo Gas, JERA from Japan, and MidOcean Energy backed by Saudi Aramco.

The timing of this potential stake sale comes at a crucial period, as market expectations around LNG have been boosted by the return of Donald Trump to the U.S. presidency. Trump’s focus on increasing domestic oil and gas production has led to a favorable environment for LNG exports.

The Louisiana LNG plant presents an opportunity for global buyers to diversify their supply base and potentially mitigate U.S. tariffs under the Trump administration by increasing energy imports from the United States. This move could help address trade deficits that have been a point of contention for the U.S. president.

Reuters spoke to seven sources familiar with the negotiations, all of whom confirmed that Tokyo Gas, JERA, and MidOcean Energy have had discussions with Woodside. Additionally, U.S. pipeline operator Williams Companies has also been in talks with Woodside regarding a potential equity stake in the project.

Woodside is expected to make a decision soon regarding the stake sale, with plans to sell 50% of the first phase of the LNG export project, estimated to cost around $16 billion to build. The project is set to be developed in four phases, with the first phase projected to produce 11 million metric tonnes per annum (MTPA) of LNG.

While Woodside has not disclosed specifics of the bidding process, the company has indicated strong interest from high-quality potential partners. The developer is also seeking higher prices for gas contracts to cover rising construction costs and mitigate future development risks.

The decision on selling stakes in the project is expected to be made soon, with Woodside aiming to bring in multiple partners by March 2025. The Australian company acquired the Louisiana LNG project as part of its acquisition of developer Tellurian Inc. last year, rebranding the project from Driftwood LNG to Louisiana LNG.

In conclusion, the potential sale of stakes in the Louisiana LNG plant represents a significant opportunity for Woodside Energy to expand its reach in the LNG market and solidify its position as a key player in the industry.

(Source: Reuters – Reporting by Marwa Rashad in London, Emily Chow in Singapore, Curtis Williams in Houston, and David French in New York; additional reporting by Yuka Obayashi in Tokyo and Yousef Saba in Dubai; editing by Peter Henderson and Nia Williams)