Woodside greenlights Louisiana LNG project

Australia’s Woodside Energy has approved a final investment decision for its Louisiana LNG project, marking a major expansion into the U.S. market. The three-train development will add 16.5 million tonnes per annum (Mtpa) of capacity, with first LNG targeted for 2029.

The fully permitted site has room for two additional trains, potentially increasing capacity to 27.6 Mtpa. The development leverages U.S. Gulf Coast gas access and a robust pipeline network to support long-term supply commitments in both the Atlantic and Pacific Basins.

“This is a game-changer for Woodside,” said CEO Meg O’Neill. “It positions our company as a global LNG powerhouse and enables us to deliver enduring shareholder returns.”

The development is the first greenfield U.S. LNG project to reach FID since July 2023 and will be the largest single foreign direct investment in Louisiana’s history. Construction will create more than 15,000 jobs and contribute to long-term energy security in markets including Europe and Asia, the company said.

“Louisiana LNG gives us the flexibility to serve established and emerging markets while optimizing value across our portfolio,” said O’Neill.

The Louisiana facility is expected to generate approximately $2 billion in net operating cash annually during the 2030s. The project will contribute to a projected 24 Mtpa global LNG portfolio by that decade, representing more than 5% of expected global supply. At full output, it could help lift Woodside’s net annual operating cash flow to over $8 billion.

The project carries a forecast capital cost of $17.5 billion, with Woodside’s share estimated at $11.8 billion. Infrastructure partner Stonepeak will provide $5.7 billion of that on an accelerated basis, contributing 75% of capital expenditures in both 2025 and 2026. Woodside is also pursuing further sell-downs to reduce its capital exposure and accelerate returns.

With a projected internal rate of return above 13% and a seven-year payback period, the investment meets or exceeds Woodside’s capital allocation benchmarks. The company emphasized that its emissions reduction targets remain unchanged and the project design includes lower-emissions technologies, such as electric-drive compressors and flareless restart systems.

Woodside has already signed a sales and purchase agreement with Uniper for 1 Mtpa of LNG from the Louisiana project, with more commercial discussions underway. By integrating the U.S. project into its marketing portfolio, Woodside aims to capitalize on pricing optionality and global demand growth.