Australian Oil and Gas Company Woodside Energy Sells Stake in Louisiana LNG Project

Australian oil and gas company Woodside Energy has made a strategic decision to sell down its equity stake in its Louisiana LNG project. The company has announced the sale of a 40 percent stake to U.S.-based investment firm Stonepeak, marking a significant development in the project’s progression towards a final investment decision.

The Louisiana LNG project, which Woodside acquired through a $900 million takeover of developer Tellurian last October, is poised to become a major player in the LNG production and export industry. With an estimated cost of $27 billion to implement the entire five-train facility near Lake Charles, Louisiana, the project holds immense potential for growth and profitability.

Strategic Partnership with Stonepeak

By selling a 40 percent stake to Stonepeak, Woodside is set to benefit from a capital injection of $5.7 billion into the project. Stonepeak’s investment will cover 75 percent of the project’s capital needs in both 2025 and 2026, easing Woodside’s capital expenditure profile and bringing the project one step closer to a final investment decision.

Woodside is also in talks with other potential partners to sell an additional 10 percent stake in the project, aiming to retain a 50 percent operating stake in the megaproject. Upon completion, the Louisiana LNG project is expected to produce 27.6 million metric tons per annum (MTPA) of LNG.

Phased Construction and Growth Potential

The Louisiana LNG project is being built in four phases, with Phase I comprising two trains capable of producing 11 MTPA and Phase II featuring one train with a capacity of 5.5 MTPA. Construction is already underway, with Bechtel awarded the contract for phases one and two.

Stonepeak’s Senior Managing Director, James Wyper, highlighted the project’s attractive risk-return profile and its potential to further propel the U.S. as a leading LNG exporter. With the country exporting 11.9 billion cubic feet per day of LNG in 2024, the addition of significant capacity from the Louisiana LNG project will solidify its position in the global LNG market.

Conclusion

The sale of a stake in the Louisiana LNG project to Stonepeak represents a strategic move by Woodside Energy to secure funding and accelerate the project’s development. With construction progressing and partnerships solidifying, the project is on track to achieve a positive final investment decision and contribute to the growth of the LNG industry in the U.S. and beyond.