ShareSaveCommentBETAThis is a BETA experience. opt-out hereBusiness EnergyWoodside FID Heralds LNG Role In Trump’s Energy Dominance AgendaByDavid Blackmon Forbes contributors publish independent expert analyses and insights David Blackmon is a Texas-based public policy analyst/consultant Jeff Landry looks on as Woodside Energy COO Daniel Kalms speaks at an April 29 ribbon .. More cutting ceremony for the Louisiana LNG Project Last week’s announcement by Perth Australia-based Woodside Energy that it had reached a final investment decision (FID) to move ahead with its proposed $17.5 billion Louisiana LNG project represents the single largest greenfield energy investment in Louisiana’s history Woodside Chief Operating Officer Daniel Kalms says it reflects a general business environment in the United States that is increasingly out-competing global rivals which under Governor Jeff Landry has evolved into the central hub of the LNG industry expansion “We’ve had a relationship in Louisiana for almost two decades with our Gulf of America operations,” Kalms told me in a May 1 interview conducted in the company’s U.S. headquarters in Houston And then the new administration is supportive of our industry which is incredibly helpful as well.” That change in administration has included President Donald Trump’s reversal of the Biden-era “pause” in permitting for new LNG projects along with an administration-wide push to encourage growth in domestic energy resources in general and expansion of the LNG export industry specifically While those and other Trump initiatives have been positive it is also important to point out that the change of administrations was not the determining factor for Woodside’s decision to dedicate so much capital on U.S when the eventual outcome of the November elections was anyone’s guess business environment was plenty competitive then enough for Woodside to risk the initial $900 million to execute the buyout Aerial view mock-up depicting Woodside Energy's Louisiana LNG project upon full completion Even better for Woodside, the Driftwood LNG project was not subject to the Biden pause because Tellurian had embarked on the permitting process in April, 2017 Kalms confirmed that the fact that Tellurian had already managed to obtain all needed federal and state permits was a big plus in the decision to execute that transaction “The fact that Tellurian already had all their permits was one of the key factors for this project,” he says “That meant that one element that would be an impediment was removed.” The absence of any such impediments at the state or federal levels left Woodside with the ability to move from initial acquisition to FID in just 7 months almost lightning speed with such a major capital outlay involved The company committed $1.3 billion in initial capital in December to kick start the project in anticipation of getting to the point of FID “We were quite confident that we would get there,” Kalms says we'll be constructing for the next four years which will be during a period where there's a lot of support for our industry It's quite a good time to be building LNG I think that we are advantaged and ahead of the pack.” Tariffs are another area of potential concern for any major energy project at this moment in time especially tariffs related to sourcing steel and aluminum Kalms says his management team did see potential for tension between the U.S Kalms pointed out that roughly 25% of the $17.5 billion capital investment applies to equipment and materials The remainder is sourced internationally from countries other than China Another key reliever of major stress over tariffs comes from the fact that Louisiana LNG is sited in the state’s foreign trade zone (FTZ) “Louisiana LNG operates in a foreign trade zone and that defers payment of any potential tariffs until at least 2029," Kalms points out but it is really helpful for making the project internationally competitive.” Woodside’s business planning and strategies have also eliminated concerns about a looming U.S requirement going into effect in 2029 that will disallow the import or export of LNG on Chinese-flagged ships “Woodside controls its own shipping,” he emphasized “We do source ships but what I would say is that there are many places where you can buy ships We’ve had quite good relationships with yards in Korea Just like we talked about that sourcing strategy for steel we also think about where we're sourcing ships from.” During its construction phase in the coming years Woodside says Louisiana LNG will support 15,000 jobs and will continue to support thousands of jobs once operational the three planned initial production trains will have the capacity to export 16.5 million metric tons of LNG per annum (Mtpa) Woodside has plans to add another pair of trains that would raise total capacity to 27.6 Mtpa Chamber of Commerce projects the LNG industry will add $1.3 trillion to US GDP between now and 2040 The study also found that progressing new projects like Louisiana LNG could avoid 780 million tons of greenhouse gas emissions globally between 2028 and 2040 For Woodside, the fact that its Louisiana LNG project helps satisfy the Trump administration’s imperative for a return to American Energy Dominance is an added bonus, and a fact that will no doubt be well received in the White House. Reporting by Sneha Kumar in Bengaluru; Editing by Muralikumar Anantharaman and Mrigank Dhaniwala Our Standards: The Thomson Reuters Trust Principles., opens new tab , opens new tab Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. , opens new tabScreen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. © 2025 Reuters. All rights reserved – Woodside Energy Group announced its $17.5 billion final investment decision for the foundation of its new liquified natural gas (LNG) production and export facility in Calcasieu Parish that is expected to produce up to 16.5 million metric tons (Mtpa) of LNG per year This announcement takes its place in both state and national history as being the first greenfield LNG project to reach final investment decision under President Trump’s second administration and the largest single foreign direct investment and greenfield project in Louisiana history “Woodside’s decision to invest in Louisiana is an unmistakable signal to the world that Louisiana is the epicenter of powering the globe,” said Governor Jeff Landry “Our ‘all of the above’ approach to energy is working We have four active LNG terminals in Louisiana – more than any other state With more than 30,000 miles of natural gas pipelines Louisiana is the place to be when it comes to LNG We are working with President Trump to deliver on America’s energy potential!” Louisiana LNG is expected to generate significant economic growth and create new opportunities for the state The project will support thousands of jobs during the construction phase as well as thousands more once operational the project will also contribute significantly towards both national and state economic growth and generate billions in additional state and local tax revenues “Louisiana LNG is a game-changing development for Woodside and for the state of Louisiana,” said Woodside CEO Meg O’Neill “We are beyond appreciative of the support we have received from Governor Landry the state of Louisiana and the local community We look forward to being a strong community partner driving economic growth and creating new opportunities for the state of Louisiana.” where our competitive advantages and comprehensive business ecosystem is generating transformational opportunities for Louisiana that have a global impact,” LED Secretary Susan B “Louisiana’s growth in the LNG sector is reinvigorating our historic status as a worldwide energy leader and Woodside choosing Calcasieu Parish shows that the work of this administration is positioning Louisiana to win.” Louisiana LNG will add to the state’s diverse and expansive energy portfolio Louisiana currently has four operational LNG export terminals and is responsible for 61% of the nation’s LNG exports The state ranks third in the nation for natural gas production and holds 6% of all U.S Woodside has a long history in Louisiana with its existing offshore business and is committed to being good corporate citizens the company invested $650,000 into Louisiana communities to fund five community grant programs and enable initiatives that support a broad range of needs in communities along the Louisiana Gulf Coast The company recently supported the Region 5 STEM Center to develop a new innovation lab that will enhance STEM education opportunities for all Southwest Louisiana students and teachers Woodside is also a Partner in Education with Calcasieu Parish School Board through the Woodside LEAD (Leadership Enrichment and Development) High School Council an initiative designed to identify and cultivate the next generation of leaders in the local community “We congratulate and welcome Woodside Louisiana LNG to Calcasieu Parish and southwest Louisiana as it moves through its final investment decision,” Calcasieu Parish Police Jury President Judd Bares said well-paying jobs for the area and will also help to grow our local economy We’re looking forward to the positive impact it’ll have on our community.” Woodside acquired the Lake Charles project with its acquisition of Houston-based Tellurian Inc The project has a total permitted capacity of 27.6 million Mtpa Construction is already underway on the foundational development with the first production target in 2029 “We are extremely excited to see Woodside Energy’s Louisiana LNG facility reach the FID milestone,” Southwest Louisiana Economic Development Alliance CEO Scott Walker said “It is a tremendous investment for Calcasieu Parish and Southwest Louisiana Projected to produce 16.5 million Mtpa of LNG per year Woodside will be able to provide for the growing energy demands around the world while being good stewards within our community Woodside has been a strong community partner and a strong environmental steward and we look forward to continuing our partnership in the coming years.” Woodside is a global energy company providing reliable and affordable energy to help people lead better lives The company is leveraging its track record of world-class project execution and operational excellence to build a diverse global portfolio Woodside has over 35 years of experience in the LNG industry including pioneering Australia’s LNG industry as operator of the North West Shelf Project which shipped its first LNG cargo to Japan in 1989 The company is executing major projects today while pursuing growth opportunities that will deliver long-term value for shareholders Woodside maintains a strong balance sheet and a disciplined investment approach Louisiana Economic Development is responsible for driving capital investment, job creation and economic opportunity for the people of Louisiana and employers of all sizes. Explore how LED is positioning Louisiana to win at OpportunityLouisiana.com Members of the news media can contact the LED Communications team for information and interview requests about LED projects and programs Media Inquiries Be the first to know the latest news and information 617 North Third StreetBaton Rouge, LA 70802-5239800.450.8115 | 225.342.3000 © 2025 LED. All Rights Reserved. Privacy Notice. | Non-Discrimination Policy. has tapped BP PLC for the supply of up to 640 billion cubic feet of natural gas for the Louisiana LNG project on the United States Gulf Coast The British energy giant will deliver the volumes starting 2029 “This agreement represents the first tranche of a diversified portfolio of feedgas that will support the Louisiana LNG project enabled by the project’s extensive interconnectivity to multiple producing basins and interconnecting pipelines” Woodside chief executive Meg O’Neill commented “Woodside has a long history of successful collaboration with bp By drawing upon bp’s experience with MiQ certificates we can access verifiably low methane intensity molecules for the Louisiana LNG project This supports Woodside’s goals as a member in the UN Environment Program’s OGMP [Oil and Gas Methane Partnership] 2.0 initiative” A day prior Woodside announced a positive final investment decision (FID) on the project which it acquired as Driftwood LNG as part of its $1.2 billion takeover of Tellurian Inc “The forecast total capital expenditure for the LNG project pipeline and management reserve is US$17.5 billion (100 percent)” the Australian oil and gas explorer and producer said New York City-based Stonepeak Partners LP will provide a staggered contribution of $5.7 billion in exchange for a 40 percent stake under an agreement announced earlier this month Louisiana LNG has an Energy Department permit to export a cumulative 1.42 trillion cubic feet a year of natural gas equivalent or 27.6 million metric tons per annum (MMtpa) of liquefied natural gas (LNG) according to Woodside which will build 3 liquefaction trains with a collective capacity of 16.5 MMtpa Louisiana has already been under construction by Reston “Development of Louisiana LNG will position Woodside as a global LNG powerhouse enabling the company to deliver approximately 24 Mtpa [million metric tons per annum] from its global LNG portfolio in the 2030s and operating over 5 percent of global LNG supply” “The development has expansion capacity for two additional LNG trains and is fully permitted for a total capacity of 27.6 Mtpa “Louisiana LNG represents a compelling investment that will deliver significant cash flow and create long-term value for Woodside shareholders It exceeds Woodside’s capital allocation targets delivering an internal rate of return above 13 percent and a payback period of seven years the foundation project is expected to generate approximately $2 billion of annual net operating cash in the 2030s It will drive Woodside’s next chapter of value creation giving the company’s global portfolio the potential to generate over $8 billion of annual net operating cash in the 2030s” Woodside said it would not revise its emission reduction plan to account for Louisiana LNG WorkBoat+ Membership – Free to Join You may unsubscribe from our mailing list at any time Diversified Communications | 121 Free Street NEWS: Long-Delayed USCG Polar Icebreaker Moves Into Full Production Woodside Energy has made a final investment decision to move forward with its $17.5 billion Louisiana LNG project marking a major expansion of the Australian energy company’s global liquefied natural gas portfolio the development will feature three LNG trains expected to produce up to 16.5 million tons per annum (MTPA) once fully operational The site is fully permitted for a total capacity of 27.6 Mtpa allowing room for future expansion with two additional trains the project could position Woodside among the world’s leading LNG suppliers enabling it to deliver approximately 24 Mtpa globally in the 2030s—more than 5% of projected global LNG supply “Louisiana LNG will enable us to deliver enduring shareholder returns while strengthening our presence across the Atlantic and Pacific energy markets.” the Louisiana LNG development is expected to generate approximately $2 billion in annual net operating cash in the 2030s The company anticipates its broader LNG portfolio could deliver over $8 billion in annual net operating cash during that same period Woodside’s share of the total forecast capital expenditure is $11.8 billion a private equity firm and investor in Louisiana LNG Infrastructure LLC will provide $5.7 billion toward project costs on an accelerated basis contributing 75% of capital expenditures in both 2025 and 2026 The project is projected to yield an internal rate of return above 13% and achieve payback within seven years The company emphasized that the investment meets its capital allocation thresholds and reflects a disciplined approach The project will source natural gas from abundant and low-cost U.S reserves and benefit from access to well-established interstate and intrastate pipeline networks Woodside also said it sees strong marketing opportunities across both the Atlantic and Pacific Basins where LNG demand remains strong due to energy security and decarbonization efforts The company said Louisiana LNG development is expected to support about 15,000 U.S which Woodside noted represents the largest single foreign direct investment in Louisiana’s history LNG project to reach final investment decision since July 2023 Woodside added that discussions are ongoing with potential strategic partners and that the company is pursuing further equity sell-downs a move it said will help reduce capital exposure and accelerate the project's value—an approach similar to its Scarborough Energy Project in Australia The company acknowledged support from both the U.S federal government and the state of Louisiana as the project moves into its next phase Become a WorkBoat+ Member Please enable JS and disable any ad blocker This website is using a security service to protect itself from online attacks The action you just performed triggered the security solution There are several actions that could trigger this block including submitting a certain word or phrase You can email the site owner to let them know you were blocked Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page CEO says Louisiana project would turn company into a ‘global LNG powerhouse’ as pressure on investors over emissions grows Australian energy company Woodside will spend $18bn on a new liquified natural gas (LNG) project in the US that one advocacy group said would add 1.6bn tonnes of greenhouse gas emissions over its 40-year life Climate advocates said the announcement, made the week before Woodside’s annual general meeting, would put further pressure on the company after a major rebuke from shareholders last year over its emissions plan said the decision to invest in the Louisiana project was a historic moment and would turn the company into a “global LNG powerhouse” Sign up for the Afternoon Update: Election 2025 email newsletter The project was expected to cost US$17.5bn (A$27bn) with investment company Stonepeak also investing US$5.7bn (A$8.8bn) chief executive of corporate climate advocacy group Market Forces said Woodside had committed to a project “that would export harmful gas until the 2070s” Market Forces estimated the project would add 1.6bn tonnes of CO2-equivalent over its life – the equivalent of running Australia’s biggest coal-fired power station, Eraring, for 120 years. For context, Australia’s total annual emissions currently are 435m tonnes. Read moreVan de Pol said Woodside investors AustralianSuper and industry super fund Hesta “can’t wash their hands of these massive new emissions committed on their watch and they must escalate pressure by voting against directors at Woodside’s AGM next week” lead analyst at the Australasian Centre for Corporate Responsibility (ACCR) and a former climate adviser to Woodside said: “Investors have voiced increasing displeasure with Woodside’s climate strategy most recently with the world’s only majority vote against a company’s climate plan at Woodside’s 2024 AGM.” ACCR sent a formal statement to Woodside to ask shareholders to vote against the re-election and election of directors at next week’s AGM. Hillman said Woodside was “doubling down on its climate strategy by proceeding with its largest-ever LNG project” and the statement would put increasing pressure on the company to listen to concerns. A spokesperson for Hesta said that the superannuation fund was “using share voting and engagement to seek more ambitious climate transition strategies from fossil fuel companies”. “Last year, we voted against Woodside’s Climate Transition Action Plan. We continue to engage with Woodside and are currently considering our voting position in relation to its upcoming AGM. “Woodside remains on our Watchlist. We regularly review our portfolio and will continue to engage on long-term climate strategy in the best interests of our members.” Sign up to Afternoon Update: Election 2025 Free daily newsletterOur Australian afternoon update breaks down the key election campaign stories of the day, telling you what’s happening and why it matters The bulk of climate-related emissions from Woodside’s business come from “scope 3” emissions, which mostly occur when the company’s gas is sold and burned by its customers. Read moreThese indirect emissions totalled 74.65m tonnes of CO2-equivalent (co2-e) last year, according to company disclosures. The company’s only plan to address these was to invest US$5bn in “new energy products and lower-carbon services” by 2030, that would indirectly cut 5m tonnes of CO2-e each year. ACCR said Woodside’s decision to go ahead with the Louisiana project would increase its annual scope 3 emissions by 27%. A Woodside spokesperson declined to comment on the increase in scope 3 emissions identified by the advocacy groups, but said the company’s climate targets – including a 30% cut to direct emissions by 2030 – remained unchanged. Woodside said its US$2.35bn investment in an ammonia project was a “material step” to its scope 3 investment goal which, when complete, would save 3.2 megatonnes of CO2-e each year. Reporting by Rajasik Mukherjee; Editing by Alan Barona and Rashmi Aich It's now time for you to write your cheque and get your seat on the ship because there are others knocking at the door,” she said.($1 = 1.5596 Australian dollars)Reporting by Adwitiya Srivastava in Bengaluru Curtis Williams in Houston and Christine Chen in Sydney; Editing by Alan Barona tracking a rise in global oil prices.Woodside kept its 2025 production and capital expenditure forecast unchanged.Reporting by Christine Chen in Sydney Roshan Thomas and Sneha Kumar in Bengaluru; Editing by Alan Barona and Kim Coghill A May 2023 photo shows construction at the Driftwood LNG facility in Calcasieu Parish Woodside Energy has made a final investment decision to build a $17.5 billion liquefied natural gas production and export facility in Calcasieu Parish which state officials said is the largest foreign investment in Louisiana history Construction of the Louisiana LNG facility has been underway for three years It will be located on a 1,200-acre site on the west bank of the Calcasieu River south of Lake Charles and is slated to produce 16.5 million tons per year of LNG It is expected to create 500 to 1,000 permanent jobs and 8,000 construction jobs Jeff Landry referred to the "long and winding road" that it took to make the export facility a reality during a news conference Tuesday announcing the project "We've addressed obstacles and moved things out of the way and we'll continue to do it as long as you keep investing in Louisiana," he told Woodside officials during the event in the courtyard of the Pentagon Barracks in Baton Rouge The development has expansion capacity that will allow it to produce 27.6 million tons of LNG annually Four LNG terminals are currently operating in Louisiana and Venture Global is nearing a final investment decision on Calcasieu Pass 2 Houston-based Tellurian first discussed building the facility it won a controversial tax concession worth up to $2 billion over its first decade which was then largest industrial tax break in Louisiana's history The project was approved by federal regulators during the first Trump Administration and received a long-term export license But disruptions caused by the COVID pandemic a lack of financing and lengthy equipment delivery timelines delayed construction Woodside is an Australian company with operations across North and South America The company shipped its first cargo of LNG from Australia to Japan in 1989 when it purchased Tellurian for $900 million it sold a 40% stake in Louisiana LNG to the infrastructure investment firm Stonespeak for $5.7 billion a move than reduced the amount of capital it would have to come up with to complete the plant and made a “material step” toward the final investment decision Stonespeak's contributions will be used to support 75% of the capital expenditures at the plant through 2026 executive vice president and international chief operating officer for Woodside said global LNG demand has increased by 60% over the past decade and is expected to grow another 50% over the next 10 years About 500 people are already working at the Louisiana LNG site concrete has been poured and dirt has been moved "One of the advantages of this project is that a lot of early work has been done," he said "It's perfectly poised to take off now with this final investment decision." The project is a “game-changer” for Woodside that will position the company as a global LNG leader The location will allow the company to sell LNG to clients in Europe and Asia which gives it options in case the Russia-Ukraine war ends and Russian natural gas is once again allowed to be sold in Europe executive director of the LSU Center for Energy Studies said the global demand for Gulf Coast LNG is being driven by the low price of natural gas in Louisiana and Texas LNG costs just under $3 per million British thermal units at the Henry Hub but $11.68 at the main European transfer facility in the Netherlands and $11.90 at the East Asia transfer point The Russian invasion of Ukraine jump-started some LNG projects that were going nowhere “Countries around the world are willing to pay a premium for long-term natural gas contracts,” Upton said 13% of the natural gas being produced in the U.S Upton said there is no theoretical ceiling on how much supply could be exported as long as customers are willing to pay the high costs of liquification and shipping “That shows how much the global market values that natural gas,” he said Louisiana Bucket Brigade SWLA Program Coordinator Lori Cooke was less enthusiastic about Louisiana LNG "There (are) so many (LNG facilities) trying to get in on the ground floor and they're frantically trying to start shipping LNG Cooke mentioned that the new facility will also bring problems with erosion and dredging as well as continued pollution to the area “We've sacrificed enough of our health and our family’s health and our ancestors' health with those dangerous chemicals that are going into the air and (this new facility) is just going to add to that,” Cooke said Staff Writer Courtney Pedersen contributed to this report Email Timothy Boone at tboone@theadvocate.com Email notifications are only sent once a day News Tips:newstips@theadvocate.com Other questions:subscriberservices@theadvocate.com Your browser is out of date and potentially vulnerable to security risks.We recommend switching to one of the following browsers: Business Reports Community Profiles Governor’s Report Industry Focus Inside LiveXchange North American Focus Q&A Regional Focus Site Seekers’ Guide Special Reports The Last Word Workforce Focus Recent Issues Digital Back Issues Advertise The largest single foreign direct investment and greenfield project in Louisiana history the facility is expected to produce up to 16.5 million metric tons (Mtpa) of LNG per year “Louisiana is in a new economic era, where our competitive advantages and comprehensive business ecosystem is generating transformational opportunities for Louisiana that have a global impact,” Louisiana Economic Development Secretary Susan B Woodside’s history in Louisiana includes an existing offshore business in October 2024 the company invested $650,000 into Louisiana communities to fund five community grant programs along the Gulf Coast Construction is underway on the foundational development with the first production target in 2029 “We are extremely excited to see Woodside Energy’s Louisiana LNG facility reach the FID milestone,” Southwest Louisiana Economic Development Alliance (SWLA) CEO Scott Walker said Minnesota is attracting billions in high-impact investments—supercharging job creation and advanced manufacturing across the state Ohio’s technology-driven economy sees increased growth in the manufacturing sector and pioneering initiatives are attracting leading life sciences companies to establish roots in the state With three top universities in the area and connectivity via major interstates Visit the GO Topeka Economic Partnership to learn more Minnesota is a place where the stars align — geography culture and institutions – to create an unmatched economic landscape See why Microbiologics CEO Kristen Knox says there’s no place in the world she’d rather do business than in Minnesota Talent Attraction – Engineering in ManufacturingLearn about high-paying careers in engineering and related fields in the manufacturing facilities of the Mount Rogers region in Virginia Doing Business in Minnesota, a Polar Semiconductor PerspectiveMinnesota is a place where the stars align — geography See what leaders at Polar Semiconductor believe are the key benefits of doing business in Minnesota Doing Business in Minnesota, a Rosenbauer PerspectiveBusiness climate. Workforce. Innovation. Infrastructure. Quality of life. Minnesota consistently ranks high for the factors important to success.  Rosenbauer is the world’s leading manufacturer of custom fire apparatus. See what role being located in Minnesota plays in their unmatched success. Business Facilities is a leading full-service media brand specializing in the site selection marketplace Business Facilities has created a dynamic community for C-level executives and economic development organizations Group C MediaThe Galleria2 Bridge Avenue,Suite 231Red Bank 800.524.0337 The Bengals today signed free agent QB Logan Woodside to a one-year contract for the 2025 season. Originally a seventh-round draft pick of the Bengals in 2018, Woodside (6-1, 210) has seen action in 13 career regular-season games for Tennessee ('20-21) and Atlanta ('22-23). He spent the 2024 season on Cincinnati's practice squad. He will be classified as a fifth-year player in 2025. View the best photos of QB Logan Woodside during his tenure with the Bengals. The Bengals today exercised CB Dax Hill's fifth-year option for the 2026 season. The Bengals today signed unrestricted free agent LB Joe Giles-Harris to a one-year contract for the 2025 season. The Bengals today signed unrestricted free agent G Lucas Patrick to a one-year contract for the 2025 season. The Bengals today re-signed WR Tee Higgins to a four-year contract through the 2028 season. The Bengals today signed TE Mike Gesicki to a three-year contract extension through the 2027 season. The Bengals today signed unrestricted free agent LB Oren Burks to a two-year contract through the 2026 season. The Bengals today re-signed unrestricted free agent DE Joseph Ossai The Bengals today signed unrestricted free agent DT T.J. Slaton Jr. to a two-year contract through the 2026 season. The Bengals today signed free agent HB Samaje Perine The Bengals today re-signed unrestricted free agent DE Cam Sample to a one-year contract through the 2025 season. The Bengals today re-signed unrestricted free agent DT B.J. Hill to a three-year contract through the 2027 season. infrastructure investor Stonepeak for $5.7 billion.Reporting by Rajasik Mukherjee; Editing by Alan Barona Woodside has sanctioned its three-train Louisiana LNG development targeting first liquefied natural gas (LNG) in 2029 In announcing final investment decision (FID) on the fully permitted project on 28 April Woodside CEO Meg O’Neill said Louisiana LNG is the first greenfield US LNG project to achieve FID since July 2023 Located near Lake Charles, Louisiana, along the US Gulf Coast, Louisiana LNG is “the largest single direct foreign investment in Louisiana’s history and the first greenfield US LNG project sanctioned since the lifting of the LNG pause,” she said during an investor briefing on the project Louisiana LNG was previously the Tellurian-owned Driftwood LNG project. In July 2024, Woodside announced it was purchasing Tellurian for $900 million as a means to further its global LNG ambitions by gaining an LNG foothold in the US O’Neill said the project is significantly derisked with a mature design; all permits; construction by Bechtel under a lump sum engineering and construction contract; and a majority of sales contracts already signed The project has reached an advanced state of construction with completion of the pilings and foundation work in progress for the LNG tanks Woodside expects to deliver about 24 mtpa from its global LNG portfolio The Louisiana project is fully permitted for a total capacity of 27.6 mtpa with the potential for additional LNG production from two more trains if the expansion phase reaches a FID She said potential future expansion could lower unit costs and enhance returns with brownfield economics O’Neill noted that the gas resource base available to the project exceeds 1,200 Tcf “There are significant quantities of low-cost natural gas available today,” she said For comparison, Woodside’s Scarborough project in Western Australia draws from about 11 Tcf of gas and is expected to come on-line in 2026 “In the case of Louisiana LNG we’re talking about a resource base more than 100 times the size of Scarborough,” she said Louisiana LNG will consume less than 2% of the US natural gas market “Our sourcing strategy is best described as a layered approach We’ll feature diversity of supply from multiple basins layered under contracts with different durations and volume commitments and from a variety of US gas producers,” O’Neill said Woodside forecasts total capital expenditure for the Louisiana LNG project, pipeline, and management reserve at $17.5 billion, of which Woodside’s share is $11.8 billion. Stonepeak, an investor in Louisiana LNG Infrastructure LLC, will provide $5.7 billion toward the expected capital expenditure for the project on an accelerated basis contributing 75% of capital expenditure in both 2025 and 2026 Woodside expects the initial project to generate about $2 billion in annual net operating cash in the 2030s after reaching full capacity and for the project to have a payback period of 7 years The project has a 4-decade or longer asset life The trains will use Chart’s IPSMR (Integrated Pre-cooled Single Mixed Refrigerant) liquefaction technology and each train will have four high-efficiency LM6000PF+ aeroderivative gas turbines for refrigerant compressor drivers Baker Hughes is supplying the mixed refrigerant compressors and control units The trains will be capable of flareless restart without gas recycle The site will house two 235,000-m3 LNG storage tanks along with a pair of jetties able to accommodate large LNG carriers Sourced natural gas will arrive through a fully permitted 37-mile (60 km) 42-in pipeline with a capacity of 3.1 to 3.4 Bcf/D carrying an estimated cost of $1.1 billion Eleven permitted interconnections will provide flexibility in gas supply Baker Hughes will supply electric drive ICL (Integrated Compressor Line) compressors “Louisiana LNG is a large-scale high-quality project which has been significantly derisked and markets to ensure successful execution,” O’Neill said the Society of Petroleum Engineers’ flagship magazine presents authoritative briefs and features on technology advancements in exploration and production ISSN: 1944-978X (Online)ISSN: 0149-2136 (Print) (World Oil) – Woodside has signed an agreement with bp for the integrated energy major to supply natural gas to the Louisiana LNG project This agreement represents the first tranche of a diversified portfolio of feedgas that will support the Louisiana LNG project enabled by the project’s extensive interconnectivity to multiple producing basins and inter-connecting pipelines Woodside’s CEO Meg O’Neill said the agreement marks another milestone for the Louisiana LNG project expected to deliver significant cash generation and create long term shareholder value Securing this gas supply agreement is an important step for the project “Woodside has a long history of successful collaboration with bp By drawing upon bp’s experience with MiQ certificates This supports Woodside’s goals as a member in the UN Environment Programme’s OGMP 2.0 initiative.” a wholly owned subsidiary of Louisiana LNG LLC has committed to purchase on a long-term basis up to 640 billion cubic feet of gas from bp for an ultimate delivery to Line 200 beginning in 2029 GasCo will be responsible for implementing the gas sourcing strategy to support the Louisiana LNG project.1 • Analytics: Data, Dashboards, Knowledge • EnerCom Conference Replays • Exclusive Executive Interviews Sign up to receive daily news and stock prices from Oil & Gas 360® directly in your email inbox Data delayed 15 minutes unless otherwise indicated (view delay times for all exchanges) Please select what you would like included for printing: Copy the text below and then paste that into your favorite email application Lisa Brethauer (Roy); June Kania (widow of Ron); and Nancy Jonas (Paul); and numerous nieces and nephews Lois was a graduate of Penn Cambria High School only friends she hadn’t gotten to know yet Her easy-going nature and genuine interest in others—were part of the magic she brought into our lives Friends will be received from 2 to 4 and 6 to 8 p.m Enter your phone number above to have directions sent via text This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply Service map data © OpenStreetMap contributors Natural Gas Market Analysis: Industry Market Size Copyright © ChemAnalyst - 2020 | Terms & Conditions | Privacy Policy The Australian company Woodside Energy has taken a final investment decision (FID) on its 16.5 Mt/year Louisiana LNG terminal The forecast total capital expenditure for the LNG export project pipeline and management reserve is estimated at US$17.5bn Woodside targets first LNG from the three-train project by 2029 which was developing the up to 27.6 Mt/year Driftwood LNG (renamed Woodside Louisiana LNG) located in the US State of Louisiana and had started construction works in 2022 which will consist of 5 LNG trains developed in phases will initially include three 5.5 Mt/year liquefaction trains with a combined capacity of 16.5 Mt/year Woodside agreed to sell a 40% stake in Louisiana LNG to the American infrastructure investor Stonepeak for a value of US$5.7bn World LNG Database offers a complete set of data on LNG markets The service provides detailed information on existing and planned liquefaction and regasification plants It also includes LNG shipping around the world time series on regasification and liquefaction capacities LNG flows and LNG prices for all players in the market Register now to subscribe to our informative monthly Woodside Energy Group has announced a final investment decision (FID) for its massive $17.5 billion Louisiana LNG production and export facility in Calcasieu Parish which represents the largest single foreign direct investment in Louisiana’s history will be capable of producing 16.5 million metric tons per annum (Mtpa) of LNG was formerly known as the Driftwood LNG project with first LNG production targeted for 2029 The development includes three LNG trains with expansion capacity for two additional trains The project is fully permitted for a total capacity of 27.6 Mtpa Woodside expects to control over 5% of global LNG supply with their global portfolio delivering approximately 24 Mtpa in the 2030s The project’s financing structure involves Stonepeak as an investor in Louisiana LNG Infrastructure LLC contributing $5.7 billion towards capital expenditure with an accelerated payment schedule of 75% in both 2025 and 2026 Woodside’s share of the total capital expenditure is $11.8 billion According to Woodside CEO Meg O’Neill “Louisiana LNG is a game-changer for Woodside set to position our company as a global LNG powerhouse and enable us to deliver enduring shareholder returns.” The project is expected to generate approximately $2 billion in annual net operating cash flow in the 2030s The development strengthens Louisiana’s position as a leading LNG export hub The state currently operates four LNG export terminals and handles 61% of the nation’s LNG exports “Woodside’s decision to invest in Louisiana is an unmistakable signal to the world that Louisiana is the epicenter of powering the globe,” said Governor Jeff Landry Woodside has already shown its commitment to the region through local investments including a $650,000 contribution in 2024 to support environmental preservation and workforce development initiatives along the Louisiana Gulf Coast The project is expected to create thousands of jobs during both construction and operational phases “As the largest single foreign direct investment in Louisiana’s history Louisiana LNG will also be the first greenfield US LNG project to go to final investment decision since July 2023,” added O’Neill Sign up for gCaptain’s newsletter and never miss an update and updates delivered daily straight to your inbox By Mark Niquette (Bloomberg) — The US merchandise-trade deficit unexpectedly widened in March to a record as companies continued importing goods to get ahead of tariffs Maersk MAERSKb.CO said on Tuesday it had maintained all its scheduled trans-Pacific sailings to date import tariffs and the trade war between the United States and China an aging supertanker fully laden with oil and calling itself Varada arrived in the waters to the east of Malaysia after a two-month voyage from Venezuela Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news Stay informed with the latest maritime and offshore news For general inquiries and to contact us,please email: [email protected] To submit a story idea or contact our editors, please email: [email protected] For advertising opportunities contactEmail: [email protected]Phone: +1.805.704.2536 Essential news coupled with the finest maritime content sourced from across the globe Connecting decision makers to a dynamic network of information Bloomberg quickly and accurately delivers business and financial information Companies have been looking to invest in US energy and LNG projects to tap into rising gas output as the country brings on a raft of new facilities. according to people with knowledge of the matter The project was acquired in 2024 from developer Tellurian, but there had been rumors that Woodside might delay the massive project. The company recently announced it was selling 40 percent of Louisiana LNG Infrastructure As part of the announcement for the final investment decision Woodside reported Stonepeak will provide $5.7 billion toward the expected capital expenditure while Woodside will invest nearly $12 billion but has said it may look for additional strategic partners “Louisiana LNG is a game-changer for Woodside set to position our company as a global LNG powerhouse and enable us to deliver enduring shareholder returns,” said Meg O’Neill “The project benefits from access to abundant low-cost gas resources in the United States and boasts an asset lifespan of more than 40 years It also has access to well-established interstate and intrastate gas supply networks.” 16.5 million tonne annual capacity with the first LNG coming in 2029 It also has an expansion capacity for two additional LNG trains and is fully permitted for a total capacity of 27.6 Mtpa Woodside reports the company will have the capacity to deliver 24 Mtpa from its global LNG portfolio in the 2030s Work had begun in March 2022 under the prior ownership with Bechtel Energy executing the Engineering and Construction (EPC) contract to begin construction of phase one The target was to reach the final investment decision with the project coming online by 2026 or 2027 but Tellurian encountered challenges launching a strategic repositioning in December 2023 with new management The original plan had called for 11 Mtpa in the first phase with a later expansion of 5.5 Mtpa The advantage for Woodside in acquiring the project was that it was fully permitted and not subject to the hold on licenses launched during the review of the industry under the Biden administration Critics however were quick to point out that the plant will contribute to greenhouse gas emissions with one forecast reported by The Wall Street Journal that it would add 1.6 billion tons of GHG emissions over its 40-year life Others are highlighting the global efforts to expand LNG production and export including Qatar’s massive project which is nearing completion many point out that as industry looks to move away from LNG to synthetic fuels and other alternatives that do not emit methane Bloomberg cites data that the LNG supply will exceed consumption by 2027 with the oversupply growing by the end of the decade When Australia’s Woodside Energy Group announced April 29 that it plans to move forward with its Louisiana LNG export terminal the state hailed the move as the “largest single foreign direct investment and greenfield project in Louisiana history.” It could also create perhaps the largest single local tax giveaway in U.S under a Louisiana law offering corporations property tax breaks worth billions of dollars a new Sierra Club study shared with DeSmog finds — representing a massive subsidy from Louisiana communities for exporting fossil fuels from the U.S That property tax revenue would normally go to fund schools, libraries, and roads. Instead, it will be pocketed by Australia’s Woodside, which aquired Tellurian Inc. and its Driftwood LNG project located in Calcasieu Parish in October 2024 Woodside’s deal comes at a dire moment for local municipal budgets. Just three days after its announcement that it will forge ahead with the LNG project, the Trump administration announced massive reductions in federal funding for education and other domestic programs — which would leave communities across the country more reliant than ever on their local tax revenues Stay up to date with DeSmog news and alerts Louisiana’s state-wide Industrial Tax Exemption Program (ITEP), which gives corporations discounts on their property taxes, has been dubbed “the biggest corporate welfare program in the nation,” and LNG projects are among its largest beneficiaries “This project is still the single biggest application that the state has ever received under this program,” Sierra Club analyst Alison Kirsch, co-author of a December 2024 Sierra Club report on LNG subsidies Sierra Club estimates Woodside’s tax break for that single application could be worth roughly $2.8 billion over 10 years (up slightly from an estimated $2.4 billion in 2018) That $2.8 billion handout to Woodside Energy could prove be a relative drop in the bucket as a wave of massive LNG export terminals comes online along the Gulf Coast. “If all of these terminals are built, together they will cost the residents of Calcasieu and Cameron Parishes $20.2 billion in lost revenue through 2040,” the December Sierra Club report titled “The People Always Pay,” concluded The LNG export boom carries other costs that reach far beyond Louisiana and the Gulf Coast Expanding LNG exports will also drive people’s utility bills up across the U.S., a study released in December by the Department of Energy (DOE) found, warning that “unfettered exports” of LNG could push domestic natural gas prices up more than 30 percent Woodside’s Louisiana LNG project alone will consume nearly two percent of all the natural gas produced in the U.S., the company noted as its decision was announced Burning that much fossil fuel will add to the impacts of the changing climate, which are being felt worldwide. There are less than 400 coal-fired power plant units left in the U.S. amid a quarter-century-long decline for the highly polluting fossil fuel But each new LNG export terminal unwinds the climate benefits from dozens of coal power plant retirements “Woodside Louisiana, if built, would create carbon emissions equivalent to 51 coal-fired power plants annually,” environmental group Rainforest Action Network found in a report released April 30 Woodside’s Louisiana LNG plant is expected to single-handedly produce over five percent of the LNG on the global market adding it expects the project will keep exporting fossil fuels for more than 40 years. Woodside Energy announced its final investment decision for the Louisiana LNG terminal in a call with analysts CEO Meg O’Neill began the call with an indigenous land acknowledgement and I would like to begin by acknowledging the Traditional Custodians of this land and pay my respects to their Elders past and present,” she said workers had already broken ground in Calcasieu Parish construction began years ago — and the project was originally slated to be completed by 2019 its property tax exemption application still shows the floundering LNG developer he co-founded in 2016.” A world away from the hallways of investment funds and luxury Aspen ranches, nearly one in five residents of Louisiana’s Calcasieu Parish live in poverty, U.S. census figures show “A quick drive through these parishes shows a harsh economic reality: a key public library still closed four years after a hurricane that devastated the community damaged churches torn down instead of being rebuilt and officials in Cameron Parish still working to resume operations at the parish’s only hospital after it was damaged by Hurricane Laura in 2020,” Sierra Club’s “The People Always Pay” report noted. “The dangerous Calcasieu River Bridge is a notorious landmark that highlights the lack of infrastructural investment in the region; the National Bridge Inventory has rated the bridge a 6.6 out of 100 in terms of sufficiency.” Property taxes when Louisiana LNG is completed could help to fund the parish and restore its infrastructure But the state’s ITEP program offers corporations like Woodside an 80 percent discount on their tax bill that lasts for a decade — meaning billions of dollars in lost revenue “One of the reforms that activists won in 2016 was slightly more local control this is local property taxes being exempted,” Kirsch told DeSmog [Jeff] Landry’s executive order in 2024 did away with the reform so the decision-making power is largely returned to the state.” Woodside did not respond to a request for comment from DeSmog about its expected tax breaks The company emphasized to investors that it sees the opportunity to profit from the cheaper cost environment in the U.S “The low-cost resource available in the U.S. and Woodside’s operational excellence allow us to generate a substantial return,” Woodside CEO O’Neill said as the decision was announced Louisiana officials emphasized Woodside’s voluntary contributions to local communities But the notion that companies should be allowed to substitute voluntary donations for tax contributions drew pushback from Sierra Club’s Kirsch “We have ways to ensure that companies pay their fair share “Let’s also not pretend that the values in dollar amounts are the same and just the mechanism is different.” “We’re talking about orders of magnitude” in the difference between Woodside’s announced voluntary contributions versus billions in tax breaks Woodside isn’t the only LNG terminal to benefit from Louisiana tax breaks the Sierra Club’s December report found that some projects have filed multiple applications for ITEP breaks — meaning their total tax relief could add up to even more than Woodside’s Supporters of property tax relief often cite the need to create jobs But Sierra Club found that most of the jobs associated with LNG projects are temporary — and the permanent jobs carry a high public price tag LNG export companies promise the creation of 686 permanent jobs in Calcasieu Parish and 2,154 in Cameron Parish,” the report found. “Accounting for the value of the ITEP tax exemptions this amounts to an astonishing $7.7 million in lost revenue per new job created by LNG companies under ITEP in Calcasieu Parish and $6.9 million in lost revenue per new job in Cameron Parish.” “The rules of the program have changed over the years always very generous to industry but sometimes even more extraordinarily so,” Kirsch told DeSmog raises the question of whether heavily subsidized LNG projects are in the public interest That’s the question federal law requires the DOE to answer as it considers whether to authorize exports of LNG to major buyers abroad The DOE authorization Tellurian secured for the Driftwood project expires in 2026 — meaning that an extension would need to be approved by the Energy Department during President Trump’s time in office who has made fast-tracking LNG approvals a central plank of his plans to promote fossil fuels retracted a Biden-era policy that required the DOE to give extension requests close scrutiny Even as the mood at Edmonton’s annual expo turned cautious industry still bet on public dollars to keep its net zero dream alive private equity firm KKR contributed to the president’s swearing-in ceremony Despite widespread public support for clean energy and climate action Nigel Farage’s party is running on an aggressively anti-net zero ticket who is accused of conducting hacking operations against 128 targets faces up to 45 years behind bars if found guilty Newsletter Website by SeriousOtters Subscribe Donate A searchable database of oil and gas debt and equity offerings Prices for top E&P stocks and commodities Rextag database of energy infrastructure assets Louisiana LNG Gas Management LLC will purchase up to 640 Bcf of natural gas from BP following Woodside Energy’s $17.5 billion FID on the project formerly owned by Tellurian BP has entered into a long-term agreement with Woodside Energy to supply natural gas to the Louisiana LNG development Woodside reached a $17.5 billion final investment decision for Louisiana LNG a wholly owned subsidiary of Louisiana LNG has committed to purchase up to 640 Bcf of gas from BP for delivery to Driftwood Pipeline’s Line 200 beginning in 2029 Driftwood became a subsidiary of Woodside following its $900 million acquisition of Tellurian Inc. Woodside said the agreement represents the first tranche of a portfolio of feedgas that will support the project enabled by the development’s interconnectivity to multiple producing basins and interconnecting pipelines GasCo will be responsible for implementing the gas sourcing strategy to support the Louisiana LNG project “Woodside has a long history of successful collaboration with BP,” O’Neill said “By drawing upon BP’s experience with MiQ certificates we can access verifiably low methane intensity molecules for the Louisiana LNG project.” O’Neill added that the supply contract supports Woodside’s goals as a member in the U.N Environment Programme’s Oil & Gas Methane Partnership 2.0 initiative This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team. and exclusive coverage you need to keep your industry edge Subscribe for free to our newsletters for the latest energy news in any form or medium without express written permission is prohibited Australia’s energy giant Woodside has signed an agreement with UK-headquartered major BP for the latter to supply gas to feed into its recently sanctioned liquefied natural gas (LNG) project in Louisiana is slated to purchase up to 640 billion cubic feet (bcf) of gas on a long-term basis from BP for an ultimate delivery to Line 200 starting in 2029 GasCo will be in charge of implementing the gas sourcing strategy to support the Louisiana LNG project this agreement represents the first tranche of a diversified portfolio of feed gas for the recently approved project The Australian player says this is enabled by the project’s “extensive” interconnectivity to multiple producing basins and interconnecting pipelines noted: “Louisiana LNG is a compelling investment Woodside has a long history of successful collaboration with bp “By drawing upon bp’s experience with MiQ certificates and Louisiana LNG VP Vanessa Martin joined the Office of Governor Jeff Landry Louisiana Economic Development Secretary Susan Bonnett Bourgeois and Calcasieu Parish Administrator Dane Bolin to celebrate the milestone we look forward to delivering a world class LNG project and the economic benefits that flow from such investments We also look forward to continuing our longstanding partnership with the state and building even stronger relationships and partnerships with the local communities around Lake Charles,” highlighted Woodside Meanwhile, BP is keeping busy with oil and gas developments, in line with its revamp strategy focusing on more investments in the oil and gas sector and limiting those related to energy transition Last week, the UK giant and its partners offshore Namibia struck oil on Block 2914 BP participates in the license as part of its joint venture with Eni The other co-venturers are Rhino Resources Daily news and in-depth stories in your inbox Ingersoll Rand Engineering Project Solutions At Ingersoll Rand’s Engineering Project Solutions we have been managing and implementing engineered to-order air packages for complex technical requirements for over 60 years We provide specialized custom compressed air and gas compressors as well as nitrogen generation packages to international EPC contractors and engineering companies across a range of […] a leading alternative investment firm specializing in infrastructure and real assets today announced an agreement to acquire a 40% interest in Louisiana LNG Infrastructure LLC (“Louisiana LNG” or the “Project”) a liquefied natural gas production and export terminal in Calcasieu Parish Louisiana owned by Woodside Energy Group Ltd (“Woodside”)(ASX: WDS positioned in the heart of the Gulf Coast LNG corridor with close proximity to natural gas resources and direct access to the US Gulf has a total permitted capacity of 27.6 million tonnes per annum and is nearing final investment decision (FID) for the foundation development and the front-end engineering design has been completed an industry leader in infrastructure project delivery and construction (EPC) contractor for the Project Woodside will continue to operate the Project following completion of the transaction “With the need to bring significant additional capacity online over the coming years we have strong conviction in the critical role Louisiana LNG will play in the US LNG export market,” said James Wyper Senior Managing Director and Head of US Private Equity at Stonepeak “The Project represents a compelling opportunity to invest in a newbuild LNG export facility nearing FID approval with an attractive risk-return profile and best-in-class partners in both Bechtel and Woodside to construct and operate the asset.” “We are very pleased to have Stonepeak join us in Louisiana LNG given their demonstrated track record investing in US gas and LNG infrastructure across LNG facilities and floating storage and regasification units This transaction further confirms Louisiana LNG’s position as a globally attractive investment set to deliver long-term value to our shareholders It is the result of a highly competitive process that attracted leading global counterparties and significantly reduces Woodside’s capital expenditure for this world-class project.” The transaction is expected to close in the second quarter of 2025 subject to conditions precedent including final investment decision for the Louisiana LNG foundation development LLC and Santander US Capital Markets LLC served as financial advisors to Stonepeak Simpson Thacher & Bartlett LLP served as transactional legal counsel and Paul Wharton & Garrison LLP served as financing legal counsel to Stonepeak RBC Capital Markets and Evercore served as financial advisors to Woodside Norton Rose Fulbright served as legal counsel to Woodside Woodside is a global energy company providing reliable and affordable energy to help people lead better lives. We leverage our track record of world-class project execution and operational excellence as we build a diverse global portfolio to meet the world’s growing energy needs. We have over 35 years of experience in the LNG industry including pioneering Australia’s LNG industry as operator of the North West Shelf Project where we shipped our first LNG cargo to Japan in 1989. We are executing major projects today, while pursuing growth opportunities that will deliver long-term value for our shareholders. We maintain a strong balance sheet and a disciplined investment approach. Woodside Energy Group Ltd. said Tuesday it had made a positive final investment decision (FID) on the Louisiana LNG project. “The forecast total capital expenditure for the LNG project, pipeline and management reserve is US$17.5 billion (100 percent)”, the Australian oil and gas exploration and production company said in an online statement. As part of a deal announced earlier this month, New York City-based Stonepeak Partners LP will provide a staggered contribution of $5.7 billion in exchange for a 40 percent stake. Woodside later signed an agreement with Uniper SE to supply the German power and natural gas utility up to 1 MMtpa from Louisiana LNG for 13 years and up to 1 MMtpa from Woodside’s global portfolio from the start of Louisiana LNG’s operation through 2039. The Gulf Coast project has an Energy Department permit to export a cumulative 1.42 trillion cubic feet a year of natural gas equivalent, or 27.6 million metric tons per annum (MMtpa) of liquefied natural gas (LNG) according to Woodside, to both FTA and non-FTA countries. The FID announced Tuesday is for phase 1, which involves 3 liquefaction trains with a combined capacity of 16.5 MMtpa, “Development of Louisiana LNG will position Woodside as a global LNG powerhouse, enabling the company to deliver approximately 24 Mtpa [million metric tons per annum] from its global LNG portfolio in the 2030s, and operating over 5 percent of global LNG supply”, Woodside said. “The development has expansion capacity for two additional LNG trains and is fully permitted for a total capacity of 27.6 Mtpa. “Louisiana LNG represents a compelling investment that will deliver significant cash flow and create long-term value for Woodside shareholders. It exceeds Woodside’s capital allocation targets, delivering an internal rate of return above 13 percent and a payback period of seven years. “At full capacity, the foundation project is expected to generate approximately $2 billion of annual net operating cash in the 2030s. It will drive Woodside’s next chapter of value creation, giving the company’s global portfolio the potential to generate over $8 billion of annual net operating cash in the 2030s”. Woodside said it would not adjust its emission reduction plan to account for Louisiana LNG, which it acquired last year as part of a $1.2 billion takeover of Tellurian Inc. Chief executive Meg O’Neill said, “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”. “The project benefits from access to abundant low-cost gas resources in the United States and boasts an asset lifespan of more than 40 years”, O’Neill added. “It also has access to well-established interstate and intrastate gas supply networks. “The marketing opportunities Louisiana LNG offers across the Pacific and Atlantic Basins leverage Woodside’s proven LNG marketing capabilities and complement our established position in Asia. This will position Woodside to even better serve global customers and meet growing energy demand. “This supply can target strong and sustained demand for LNG expected in both Asia and Europe, as those markets pursue energy security and decarbonization aspirations. “We are pleased with the strong level of interest from potential strategic partners and are advancing discussions targeting further equity sell-downs”. To contact the author, email jov.onsat@rigzone.com (World Oil) – Woodside has made a final investment decision to develop the three-train 16.5 million tonne per annum (MMtpa) Louisiana LNG development Development of Louisiana LNG will position Woodside to deliver approximately 24 Mtpa from its global LNG portfolio in the 2030s and operating over 5% of global LNG supply.1 The development has expansion capacity for two additional LNG trains and is fully permitted for a total capacity of 27.6 Mtpa It will drive Woodside’s next chapter of value creation giving the company’s global portfolio the potential to generate over $8 billion of annual net operating cash in the 2030s.2 The forecast total capital expenditure for the LNG project pipeline and management reserve is US$17.5 billion (100%).3 Stonepeak as an investor in Louisiana LNG Infrastructure LLC will provide $5.7 billion towards the expected capital expenditure for the LNG project on an accelerated basis contributing 75% of capital expenditure in both 2025 and 2026.4 Woodside’s share of forecast total capital expenditure is $11.8 billion “Louisiana LNG is a game-changer for Woodside set to position our company as a global LNG powerhouse and enable us to deliver enduring shareholder returns,” said Meg O’Neill “This world-class project is a compelling and de-risked investment It leverages Woodside’s proven strengths in project execution marketing and customer relationships to offer significant cash generation and drive long-term shareholder value “Adding Louisiana LNG to our established Australian LNG business provides Woodside with a balanced and resilient portfolio flexible LNG assets with high-return oil assets,” O’Neill continued “The project benefits from access to abundant low-cost gas resources in the United States and boasts an asset lifespan of more than 40 years It also has access to well-established interstate and intrastate gas supply networks “The marketing opportunities Louisiana LNG offers across the Pacific and Atlantic Basins leverages Woodside’s proven LNG marketing capabilities and complements our established position in Asia This will position Woodside to even better serve global customers and meet growing energy demand “This supply can target strong and sustained demand for LNG expected in both Asia and Europe as those markets pursue energy security and decarbonization aspirations Louisiana LNG will also be the first greenfield U.S LNG project to go to final investment decision since July 2023 Sign up to receive daily news and stock prices from Oil & Gas 360® directly in your email inbox. Market Data ©2020–2024 QuoteMedia. Data delayed 15 minutes unless otherwise indicated (view delay times for all exchanges). RT=Real-Time, EOD=End of Day, PD=Previous Day. Market Data powered by QuoteMedia. Terms of Use. Free NewsletterUK Join the newsletter that everyone in finance secretly reads Woodside Energy Group is venturing deep into US waters with a final investment decision on a $17.5 billion LNG project in Louisiana, sparking interest from industry bigwigs. Woodside’s strategic maneuver indicates burgeoning opportunities in the LNG market, driven by changing energy needs. Partnership talks, involving firms like Kufpec and JERA, could redefine market dynamics and present new investment avenues, though existing shares endured a short-term dip. The bigger picture: Energy's evolving landscape. With Woodside's expansion, the global energy market braces for transformation amid fresh gas exploration endeavors. This LNG investment transcends a mere business move, aligning with a broader narrative on sustainable energy, hinting at substantial shifts in national energy security strategies. Theodora Lee Joseph, CFA The Great Wealth Transfer Is Coming – Here’s How To Profit From It Jonathan Hobbs, CFA Why GameStop Might Actually Be Worth A Look Right Now Stéphane Renevier, CFA Markets Could Pick A Direction This Week – Here's Why Theodora Lee Joseph, CFA Political Risk Is Part Of A Stock’s Value Now – And, No, You Can’t Afford To Tune It Out Theodora Lee Joseph, CFA Apple And Amazon’s Results Were Sturdy, But Their Future Looks A Little Less SoREAD NEXTNews Skechers Goes Private In $9.4 Billion Deal With 3G Capital Finimize Newsroom Edgewell Braces For 2025 Challenges As Tariffs Bite Finimize Newsroom One Common Hedge-Fund Trade Could Bring Down Financial Systems – And It Nearly Backfired This Week Russell Burns A Defensive Portfolio Prepared For The Wealth Effect’s Reversal Stéphane Renevier, CFA Coinbase’s Steep Drop Might Make It Interesting, But It Hasn’t Made It Cheap Russell Burns Tariffs Are Spooking Investors Into Panic-Selling – Here’s What to Do Instead Reda Farran, CFA Threats Are Rising. So Here’s How To Invest In Cybersecurity.Theodora Lee Joseph, CFA Apple And Amazon’s Results Were Sturdy, But Their Future Looks A Little Less So Theodora Lee Joseph, CFA Field DevelopmentAustralian LNG project knocked by latest legal challengeDoctors challenge Nopsema's Scarborough Environment Plan approval Stay at the forefront of the industrial gas industry with a gasworld subscription and get access to: Global energy giant BP will supply natural gas to Woodside for its Louisiana LNG project marking Woodside’s first secured tranche of feed gas for the site will buy up to 640 billion cubic feet of gas from BP starting in 2029 for delivery via pipeline The dedicated subsidiary is implementing the gas sourcing strategy to support the project Louisiana LNG reached a final investment decision yesterday and will have the capacity to produce 16.5 million tonnes of LNG annually once it comes onstream The total expected cost for the LNG project and reserves is $17.5bn.769" data-ag-order="0" data-ag-v2="1"> said the gas supply agreement was important “By drawing upon BP’s experience with MiQ certificates we can access verifiably low methane intensity molecules for the Louisiana LNG project.” Molly Burgess is the US Editor at gasworld Having joined the company in November 2018 Molly is primarily responsible for North American news exclusives and features across the website and the US magazine.