Woodside gives green light to massive Louisiana LNG project

Woodside Energy Group has approved the development of its Louisiana LNG facility, committing to a $17.5 billion investment that will establish the Australian company as a major global player in liquefied natural gas.

The three-train development, with annual capacity of 16.5 million tonnes, is set to deliver first LNG by 2029 and positions Woodside to operate over 5% of global LNG supply in the 2030s, with a portfolio delivering approximately 24 million tonnes per annum.

Woodside CEO Meg O'Neill said the final investment decision on Louisiana LNG was an historic moment for the company, describing the project as a "game-changer" that would position Woodside as a "global LNG powerhouse". The project exceeds Woodside's capital allocation targets, delivering an internal rate of return above 13% and a seven-year payback period.

The investment firm Stonepeak has agreed to provide $5.7 billion towards capital expenditure, contributing 75% of capital expenditure in both 2025 and 2026, which reduces Woodside's share to $11.8 billion. The company is also pursuing further equity sell-downs to strategic partners.

The development benefits from access to abundant low-cost gas resources in the United States and boasts an asset lifespan exceeding 40 years, with established interstate and intrastate gas supply networks. It will complement Woodside's established position in Asia, allowing the company to serve customers across both Pacific and Atlantic basins.

"Adding Louisiana LNG to our established Australian LNG business provides Woodside with a balanced and resilient portfolio, combining long-life, flexible LNG assets with high-return oil assets," O'Neill said.

As the largest foreign direct investment in Louisiana's history, the project will create approximately 15,000 national jobs during construction. The development is expected to generate about $2 billion in annual net operating cash for Woodside when running at full capacity in the 2030s, helping drive the company's total portfolio cash generation to potentially exceed $8 billion annually.