Woodside to Bring in Several Partners to Louisiana LNG Project by March, CEO Says

Woodside Energy anticipates incorporating several partners into its Louisiana liquefied natural gas (LNG) project by the time the company reaches the financial go-ahead in the first quarter of 2025. This U.S. project, located on the Gulf Coast, could convert U.S. shale gas into as much as 27.7 million tons per annum of LNG.

In October, Woodside, listed on the Australian securities exchange, fully acquired developer Tellurian Inc. for $1.2 billion, now seeking to sell a 50% stake in the Louisiana LNG project. The addition of partners seeks to leverage insight and resources from diverse stakeholders.

Woodside has engaged in discussions with U.S. natural gas producers, traditional LNG buyers (who might take equity stakes along with LNG supplies from the project), and infrastructure-focused investors interested in long-term, steady revenue. The company’s CEO, Meg O’Neill, mentions that announcements concerning new partners will align with, or potentially precede, their final investment decision.

“The goal is to assemble a dream team where each partner contributes unique value—be it knowledge of the onshore gas market, infrastructure capital, or LNG offtake and marketing expertise,” O’Neill explained.

While specific companies in negotiations remain unnamed, there are ongoing talks reported, such as those with Tokyo Gas. Despite these sensitive negotiations, O’Neill expressed confidence that Woodside could independently finance its share of the development costs through its balance sheet.

Gas supply contracts are expected to be finalized after the project’s financial decisions in 2025, with production aimed to commence in 2028.

Cost estimates for the project range between $900 and $960 per ton of LNG, following renegotiations with service company Bechtel. While there are inflationary pressures affecting the supply chain and labor market, careful financial planning and strategic partnerships are slated to offset these issues.

Woodside’s strategic move to integrate diverse partners addresses both financial and operational challenges, ensuring a robust structure as they enter this significant venture.

In conclusion, the unfolding developments around Woodside Energy’s ambitious Louisiana LNG project mark a noteworthy investment and operational strategy within the growing LNG sector. By targeting an expansive partnership structure, Woodside prepares to enhance its project capabilities, financial stability, and market reach.